BTC/USD Signal Today - 17/06: BTC Forms A Double Top (Chart)

(MENAFN- Daily Forex) Bearish view

  • Sell the BTC/USD pair and set a take-profit at 64,000.
  • Add a stop-loss at 68,500.
  • Timeline: 1-2 days
Bullish view
  • Buy the BTC/USD pair and set a take-profit at 68,500.
  • Add a stop-loss at 64,000.

Bitcoin price remained under pressure on Monday morning as the recent bullish momentum faded. The BTC/USD pair was trading at 66,580 on Monday, down from this month's high of almost 72,000 lacks a clear catalyst

The price of bitcoin and other altcoins dipped sharply recently after the Federal Reserve delivered a hawkish interest rate decision. In it, the officials left rates unchanged between 5.25% and 5.50% and hinted that they would only deliver one cut this year.

The Fed's decision was different from what the Bank of Canada (BoC) and the European Central Bank (ECB) this month. They became some of the major central banks to start cutting interest rates.

The Fed is concerned that the US inflation is still significantly above its 2% target. As such, cutting rates would point to capitulation, which would likely lead to a higher inflation rate for longer.

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Still, American stocks continued rising after the hawkish Fed, with the Nasdaq 100 and S&P 500 indices nearing their all-time highs.

Bitcoin has also slumped as ETF inflows slow. All spot Bitcoin ETFs hold over 800k Bitcoins worth over $60 billion. Inflows in the past few weeks have been relatively weak. Still, MicroStrategy is continuing to buy Bitcoins. Last week, it unveiled a new $500 million debt raise to find purchases.

There are also signs that some Bitcoin holders like mining companies have started to sell their holdings.

Still, in the long term, Bitcoin has some potential catalysts. Demand is still rising from institutional investors, the Fed will ultimately start cutting interest rates, while regulations are getting clearer. Donald Trump, who is leading in the polls, met with Bitcoin mining executives last week and pledged his support/USD technical analysis

The daily chart shows that the price of Bitcoin formed a small double-top pattern at 71,937 last week. In most periods, a double-top is one of the most bullish signs in the market. Bitcoin is now hovering at its neckline, which also coincides with the Woodie pivot point,

The BTC/USD pair has also moved slightly below the 25-day moving average. Also, the histogram of the MACD has moved below the zero line. The Relative Strength Index (RSI) has dropped below 50.

Therefore, the pair will likely have a bearish breakout as sellers target the key support at 60,000. The alternative is where it rebounds and retests the double-top level of 71,937.

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