(MENAFN- Daily Forex) Bearish view
Sell the BTC/USD pair and set a take-profit at 60,000. Add a stop-loss at 67,000. Timeline: 1-2 days.
Bullish view
Set a buy-stop at 66,000 and a take-profit at 68,000. Add a stop-loss at 63,000.
Bitcoin price has remained under intense pressure in the past few weeks as demand for the coin continues to wane. The BTC/USD pair was trading at 65,000 on Thursday morning, down from this month's high of nearly 72,000 of new money
Bitcoin has plunged for several reasons. First, there are signs that miners have started to capitulate and have been selling some of their Bitcoin holdings. This is a sign that these companies anticipate Bitcoin will start retreating. It could also be a sign that they are moving to cash to buy more mining machines after April's halving event.
Second, there are signs that there is limited new money coming in the crypto market. One of the best measures for this is Tether, the biggest stablecoin in the world. Data shows that its market cap has been stagnant at about $112 billion in the past few weeks.
Third, the coin has also crashed because of no significant news in the industry. The most important Bitcoin news has already happened. The SEC approved eleven spot Bitcoin ETFs in January while the halving event happened in April.
Finally, there are signs that the Fed will not cut interest rates this year after all. Recent data showed that inflation remained above the Fed's 2% target in May. While inflation is falling, it is not doing so at a faster pace than expected.
Bitcoin and other risky assets thrive in a period when the Fed is either cutting rates or when it has signaled that it will start slashing them.e
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BTC/USD technical analysis
Bitcoin price formed a double-top pattern at 71,950 in May and June. In technical analysis, this is one of the most bearish chart patterns. The BTC/USD pair has now slipped below the pair's neckline at 66,233, its lowest point on May 23rd.
Bitcoin's sell-off is being supported by the 50-day moving average and the Ichimoku cloud indicator. Also, the MACD indicator has remained below the neutral point while the Relative Strength Index (RSI) has remained below the neutral point of 50.
Therefore, the pair will likely continue falling as sellers target the next psychological level at 60,000. The stop-loss of this trade will be at 67,000.
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