Bearish view
Sell the BTC/USD pair and set a take-profit at 78,000.
Add a stop-loss at 82,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 82,000.
Add a stop-loss at 78,000.
Bitcoin price held steady at an important support level as the recent rally lost momentum. The BTC/USD pair dropped to 80,000, much lower than last month’s high of 87,365. It remains under pressure as demand among investors wanes.
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Bitcoin Price Remains Under Pressure Ahead of Fed
BTC/USD pair has slumped in the past few days as demand among investors has waned. Investors have remained concerned about several things, including the rising oil prices. Brent and the West Texas Intermediate (WTI) have all jumped to the highest levels since May. As a result, there are concerns that inflation will continue rising in the coming months.
Bitcoin has also wavered because of the ongoing performance in the bond market. While yields have eased a bit, they remain near the highest levels this year. The ten-year yield is hovering at 5%, while the five-year has moved to 4.83%.
Bitcoin often underperforms the market whenever yields are rising because it is a non-yielding assets. Focus now shifts to the upcoming Federal Reserve interest rate decision, which will likely have an impact on the bond market. Economists expect the bank to leave interest rates unchanged between 3.75% and 4%.
Bitcoin price has also dropped as demand for spot ETFs has waned. These funds have shed over $800 million in the past three days, bringing the monthly outflows to over $400 million, bringing the total assets to $104 billion.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has slumped in the past few days and is not finding buyers. As a result, it has continued forming lower lows and lower highs. It has already moved below the 50-day moving average and the important support level of 82,760, its highest level in May.
Top oscillators like the MACD and the Relative Strength Index (RSI) have continued moving downwards. The MACD recently crossed the zero line and is pointing lower. Therefore, the most likely scenario is where it continues falling, potentially to the key support level of 78,000. A move above the resistance level of 82,000 will invalidate the bearish outlook. Ready to trade our free Forex signals? Here are the best MT4 crypto brokers to choose from.