Bitcoin Drops Below $79,000: Inflation Fears Hit Risky Assets

Bitcoin has fallen below $79,000, testing key technical support levels. While the RSI is approaching oversold territory at 35, the MACD remains below the signal line and in negative territory. Trading below the 20- and 50-day moving averages suggests that short-term pressure may persist. Reduced risk appetite amid inflation concerns is supporting the downward trend in Bitcoin. However, the possibility of some recovery due to oversold conditions should not be ruled out.

Bitcoin's decline below $79,000 indicates that inflation concerns are negatively impacting risk assets. Although the SPX's RSI stands at 47.7, in neutral territory, the price trading below the 20-day moving average (7447) signals short-term weakness. The MACD remains below the signal line, confirming downward momentum. Inflation fears typically pressure indices, so the SPX is likely to test the 7400 support level in the coming days.

NDX closed at 29,179 points, down 0.47% in the last 24 hours, trading below its 20-day SMA (29,319). The RSI has slipped to 46, dipping below the neutral zone, indicating weakening short-term momentum. The MACD line remains below the signal line with a bearish crossover, suggesting continued selling pressure. News of Bitcoin falling amid inflation concerns points to reduced risk appetite, which could weigh on the tech-heavy NDX. However, the 50-day SMA (29,063) may act as a nearby support level, potentially limiting the downside.