Bearish view
Sell the BTC/USD pair and set a take-profit at 60,400.
Add a stop-loss at 70,000.
Timeline: 1-3 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 70,000.
Add a stop-loss at 60,400.
Bitcoin price remained in a tight range below the important support level at $70,000 as fear spread across the market. The BTC/USD pair was trading at 66,800, down sharply from the year-to-date high of 126,300.
Bitcoin Price Wavers as Fear Continues
The BTC/USD pair remained on edge on Tuesday as investors predicted that the ongoing US-Iran war will continue for longer than expected now that the Houthis have joined the war and the US has sent thousands of troops to the region.
As a result, there are signs that investors are highly fearful, with the Fear and Greed Index moving to the extreme fear zone of 9. The Crypto Fear and Greed Index has also dropped to the fear zone of 25.
This trend continued this week as energy prices continued soaring, with Brent rising to $116 and the West Texas Intermediate (WTI) closing above $100 for the first time since 2022.
Data shows that Bitcoin ETFs have continued shedding assets in the past few weeks. These funds lost over $296 million last week and the trend is continuing this week.
Bitcoin’s retreat coincided with the ongoing stock market dive, with the Nasdaq 100 and S&P 500 indices dropping by 0.75% and 0.35%, respectively on Monday. This retreat happened even after Donald Trump announced that his administration was in talks with Iran.
The next key catalyst for the BTC/USD pair will be the upcoming US consumer confidence report, which will come out on Tuesday. Economists expect the data to show that confidence dropped to 88 from the previous 91.2.
The US will also publish the latest jobs numbers, with the JOLTs coming in on Tuesday. Also, the Bureau of Labor Statistics (BLS) will publish the latest non-farm payrolls data later this week.
BTC/USD Technical Analysis
The three-day chart shows that the BTC/USD pair has slumped in the past few months, falling from 126,300 in October to the current 66,900. It formed a death cross pattern in February as the 50-day and 200-day moving averages crossed each other.
The pair has moved below the lower side of the bearish flag pattern, a common continuation sign. Therefore, the pair will likely continue falling as sellers target the key support level at 60,400, its lowest point in February.