(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 112,000.
• Add a stop-loss at 121,000.
• Timeline: 1-2 days.

Bearish view

• Sell the BTC/USD pair and set a take-profit at 112,000.
• Add a stop-loss at 121,000.

Bitcoin price wavered above the crucial support level above $115,000 on Tuesday as the recent bullish momentum waned. The BTC/USD pair was trading at 116,400, down from the year-to-date high of 124,200.

Bitcoin's price action mirrored that of the stock market, as the Dow Jones, S&P 500, and Nasdaq 100 indices dropped slightly on Monday, with traders waiting for key Fed events.

The Federal Reserve will publish minutes of the last meeting on Wednesday. Historically, the Fed minutes have provided more information about what happened in the previous meeting and hints on what to expect in the coming ones.

These minutes, however, will likely have a minimal impact on assets as the meeting happened before the Bureau of Labor Statistics published strong inflation data.

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The report showed that the headline Consumer Price Index data rose 2.7% in July, meeting analyst estimates. Core inflation, which excludes the volatile food and energy prices, rose to 3.1%, moving further away from the Fed's target of 2.0%.

The BTC/USD pair will react to the upcoming Jackson Hole meeting in which Jerome Powell will provide more information about what to expect in the coming meetings. Economists expect him to maintain a balanced tone as the impact of tariffs on inflation continues.

Bitcoin price also reacted to the ongoing accumulation by some of the top holders in the industry. Strategy spent $51 million to acquire 430 coins, bringing the total hoard to 629,000. Metaplanet, the biggest hoarder in Japan, bought 775 coins in a $93 million deal.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily chart shows that the BTC/USD pair has remained under pressure in the past few days as the momentum of hitting a record high faded. It was trading at 116,428 on Tuesday, a few points below the resistance level at 123,283.

The pair is consolidating at the 50-day and 25-day Exponential Moving Averages (EMA), while the MACD and the Relative Strength Index (RSI) has pointed downwards.

Therefore, the pair will have a bearish breakdown as sellers target the key support level at 112,000. The bearish view will be invalidated if the pair moves above the resistance level at 123,282.

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