(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 80,000.
• Add a stop-loss at 89,000.
• Timeline: 1-2 days.

Bullish view

• Buy the BTC/USD pair and set a take-profit at 89,000.
• Add a stop-loss at 80,000.

Bitcoin price suffered a strong reversal on Monday, erasing most of the gains it made last week when it soared to $93,000. The BTC/USD pair has dropped to the lowest level since November 21, which is also 32% below the current level Price Crashes as Rally Loses Momentum

The BTC/USD pair dropped sharply, coinciding with the performance of the stock market, with top indices like the S&P 500 and the Dow Jones dropping by over 0.50%.

This decline happened as liquidations jumped, with some traders who bought the recent dip using leverage suffering over $700 million in losses as their positions were shut. This liquidation figure dwarfed the $20 billion figure that happened on October 10 this year.

Bitcoin dropped as traders positioned their positions after last Friday's options expiry, which were valued at over $13 billion. It is common for the crypto market to have volatility when these options expire.

The BTC/USD pair retreated as spot Bitcoin ETFs continued to shed assets. All Bitcoin ETFs shed over $3.5 billion in assets last month, the biggest monthly outflow in months.

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Further, there are increasing concerns about USDT, the biggest stablecoin in the industry. In a recent report, S&P Global decided to downgrade the token, citing its exposure to risky assets like Bitcoin and gold, persistent transparency issues, and concerns about its reserves composition.

This is notable because, unlike USDC, Tether is not backed by just fiat currencies. It has an exposure to corporate bonds, gold, and Bitcoin.

Additionally, there are concerns that some Bitcoin treasury companies will start to sell their tokens as the mNAV multiples deteriorate.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily timeframe chart shows that the BTC/USD pair has plunged in the past few months. Its attempt to rebound recently found a substantial resistance at $93,000, which was a notable lower high.

The coin has remained below all moving averages, a sign that bears are in control for now. It has also moved below the Ichimoku cloud and Supertrend indicators, while the Relative Strength Index (RSI) has pointed downwards.

Therefore, the BTC/USD pair will likely continue falling as sellers target the next key support level at 80,000. A move below that support will point to more downside as it will invalidate the bullish outlook and point to more downside.

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