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MENAFN- Daily Forex) Bearish view
Sell the BTC/USD pair and set a take-profit at 55,000. Add a stop-loss at 62,000. Timeline: 1-2 days.
Bullish view
Set a buy-stop at 59,000 and a take-profit at 62,000. Add a stop-loss at 56,000.
Bitcoin price continued its recent consolidation as the crypto industry continued to underperform the broader market. The BTC/USD pair remained in a bear market after falling by about 20% from its highest point this year. It was trading at 58,500 on Tuesday, where it has been in the past few weeks.
Bitcoin has wavered after lacking a clear market defining catalyst in the crypto industry. For example, spot Bitcoin ETFs have had outflows in the last four consecutive days, signaling that demand among investors is waning. Ethereum ETFs have fared much worse, having had net outflows of over $477 million.
At the same time, crypto investors are still dealing with the huge liquidations that happened on August 5 as the fears of the Japanese yen carry trade unwinding continued. On that day, bulls and bears were liquidated coins worth billions of dollars as volatility increased.
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Bitcoin has also reacted mildly to the rising hope that the Federal Reserve will start cutting interest rates this month. In a statement at the Jackson Hole Symposium, Jerome Powell, the bank's head noted that the Fed was ready to change its tone.
What is unclear, however, is the size of the next rate cut. Most analysts believe that the cut will depend on next Friday's non-farm payrolls (NFP) jobs report. A lower-than-expected figure will increase the odds of a jumbo cut.
In most cases, risky assets like Bitcoin and cryptocurrencies do well when the Fed is cutting interest rates. This explains why US stocks have jumped, with the S&P 500 and Nasdaq 100 indices soared to a record high/USD technical analysis
The BTC/USD pair has remained in a tight range in the past few weeks as traders waited for the next catalyst. On the daily chart, it is consolidating between the middle and the lower side of the Bollinger Bands.
The MACD indicator has moved below the neutral point of zero while the Relative Strength Index (RSI) has remained at the 50 level. Volume and futures open interest have continued falling.
Therefore, the pair will likely remain in this range on Tuesday. The key support and resistance levels to watch will be at 56,000 and 62,000. A drop below the support at 56,000 will point to more downside as sellers target the key point at 50,000.
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