The pair will likely keep falling as bears target the next key support at 55,000.
Sell the BTC/USD pair and add a stop-loss at 55,000.
Add a take-profit at 59,000.
Timeline: 1-2 days.
Set a buy-stop at 59,000 and a take-profit at 61,000.
Add a stop-loss at 57,000.
The BTC/USD price remained under pressure as investors focused on demand. Bitcoin is trading at $57,600, which is about 16.55% below its highest level on record. Other altcoins like Ethereum, Binance Coin, and Dogecoin have also retreated. According to CoinGecko, the total market value of all cryptocurrencies has dropped to more than $2.7 trillion.
Blockchain Industry is Doing Well
The BTC/USD pair declined sharply even as more money continued flowing to the cryptocurrency industry. For example, on Monday, MoonPay said that it had raised more than $500 million from investors. The new funding brings the company’s valuation to more than $3.4 billion.
This announcement came a few days after Gemini, an exchange started by the Winklevoss twins, raised $400 million at a $7 billion valuation. Last week, Consensys, a company started by an Ethereum co-founder, raised $200 million at a $3.2 billion valuation. In total, there are now more than 64 cryptocurrency unicorns, meaning that the industry has gone mainstream.
Meanwhile, another sign that the blockchain industry is tightening is that mining Bitcoin has become relatively hard. In the past few days, mining difficulty has jumped to a record high as Bitcoin demand rises. This is a sign that concerns about China crackdown have abated.
Indeed, according to the Financial Times, most Chinese miners moved their machinery to countries like Venezuela, Kazakhstan, and Russia. Other firms moved to the United States, which has now become the biggest mining country in the world.
The BTC/USD has also struggled because of the relatively strong US dollar. The US dollar index has surged to the highest level in more than a year as investors price in more tightening by the Federal Reserve.
The BTC/USD pair is trading at 57,933, which was about 16% below the highest level this year. The current price is important since it was the lowest level on October 28. It is also the chin of the double-top pattern that formed recently. Most importantly, Bitcoin is still below the 25-day and 50-day moving averages.
Therefore, the pair will likely keep falling as bears target the next key support at 55,000. This price is about 5% below the current level. It is also a few points below the lowest level during the weekend.