(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 105,000.
• Add a stop-loss at 118,000.
• Timeline: 1-2 days.

Bullish view

• Buy the BTC/USD pair and set a take-profit at 118,000.
• Add a stop-loss at 105,000.

Bitcoin price plunged to below the crucial support at $112,000 as leveraged bets worth billions of dollars were wiped out. The BTC/USD pair has moved into a correction after falling by 10% from the highest point this year Price Plunges as Liquidations Jump

The BTC/USD pair has plunged as leveraged bets worth over $300 million were liquidated. In all, bets worth almost $500 million were liquidated in the past few days. Liquidations are bearish as they close trades, leading to more selling pressure.

Bitcoin price has plunged as investors reacted to the Federal Reserve's interest rate decision last week. In a statement, the bank slashed rates by 0.25% and hinted of more cuts later this year. While rate cuts are bullish for Bitcoin, the decline is likely happening as investors sold the news.

The BTC/USD pair dropped as investors reacted to the slowing acquisitions by companies. In a statement on Monday, Michael Saylor's Strategy, said that he had bought 6,269 coins worth over $729 million last week.

In another statement, MetaPlanet, a Japanese company, said that it had bought 5,419 coins worth over $632 million. While the two companies have intensified their purchases, many others that used to buy recently, have stopped the accumulation/USD Technical Analysis

The daily timeframe chart shows that the Bitcoin price peaked at a record high of $124,200 on August 14 to a low of $112,100. It has plunged below the 50-day Exponential Moving Average (EMA).

The pair has moved below the Ichimoku cloud indicator, a sign that bears are in control. It has formed a head-and-shoulders pattern, a popular bearish reversal pattern.

The Relative Strength Index (RSI) dropped below the neutral point at 50. Also, the two lines of the MACD indicator have formed a bearish crossover pattern.

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Therefore, the pair will likely continue falling as sellers target the key support at 105,000. A move above the resistance point at 118,350 will invalidate the bearish outlook and point to more gains, potentially to 120,000.-p

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