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Bitcoin and other cryptocurrencies continued to decline Friday, sliding further from key levels as analysts eyed a gloomy technical backdrop for digital assets with few immediate catalysts for a rebound.

The price of Bitcoin has fallen 4% over the past 24 hours to $26,400, its lowest level in almost two months. The largest digital asset continues to languish well below the technically and psychologically important zone around $30,000, which prices topped in April for the first time since June 2022, when the crypto crash accelerated into a brutal bear market. Bitcoin has failed to consolidate these gains and has accelerated lower in recent days despite catalysts that could be read as positive.

Bitcoin is trading at its lowest level since March 17, losing over 15% from its peak last month, said Alex Kuptsikevich, an analyst at broker FxPro. Bitcoins return to $25,000 looks like a real prospect in the coming days.

While macroeconomic data have provided catalysts in recent days, Bitcoin has failed to capitalize on trends indicating an improving backdrop for the most risk-sensitive assets, like cryptos and high-growth stocks like those in the tech sector.

In the stock market, the tech-heavy Nasdaq Composite which tends to trade more like Bitcoin than do the Dow Jones Industrial Average and S&P 500 has marched higher amid signs of cooling inflation. Disinflation should allow the Federal Reservewhose campaign of dramatic interest-rate hikes over the past year have wreaked havoc on Bitcoin and tech stocks aliketo pause, supporting high-growth assets.

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But it has done little to buoy Bitcoin, adding to worrying technical signs of cryptos weakening. Sentiment over digital assets also has taken a hit, with the Crypto Fear and Greed Index falling to 49 on Friday, indicating neutral sentiment but sitting at the lowest levels since early March, when a selloff pushed Bitcoin close to $20,000.

The local technical pattern offers little reason for optimism, added Kuptsikevich, citing Bitcoins plunge through its 50-day moving average earlier this week and stagnation below another support line at $27,500. In other words, we see more than just a correction of this latest growth impulse, said the analyst.

Beyond Bitcoin, Ether the second-largest cryptofell 3% to below $1,775. Smaller cryptos or altcoins were more mixed, with Cardano up 2% and Polygon down 1%. Memecoins were also mixed, with Dogecoin hovering around flat and Shiba Inu shedding 2%.

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Write to Jack Denton at jack.denton@barrons.com

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Bitcoin Keeps Falling, Hitting Two-Month Lows Amid Little Reason for Optimism - Barron's