The BTC/USD price remained in a tight range during the overnight session as the fallout surrounding FTX’s collapse continued.
- Sell the BTC/USD pair and set a take-profit at 15,000.
- Add a stop-loss at 18,155.
- Timeline: 1-2 days.
- Set a buy-stop at 18,156 and a take-profit at 20,000.
- Add a stop-loss at 17,000.
The BTC/USD price remained in a tight range during the overnight session as the fallout surrounding FTX’s collapse continued. Bitcoin wavered as calls for more cryptocurrency regulations continued. It was trading at 16,700, higher than last week’s low of 15,525.
The collapse of FTX, the second-biggest crypto exchange in the world, has led to calls for more regulations in the industry. In a statement on Tuesday, Senator Bob Menendez called upon Congress to take a serious look at crypto exchanges and lending platforms.
The same view was supported by several Republican officials like Cynthia Lummis and Patrick Toomey. In his statement, Toomey criticized regulators like the Securities and Exchange Commission (SEC) for focusing on matters outside their mandates like climate-related risks.
Therefore, analysts believe that regulators will come up with more rules to oversee the industry. Thes rules will be positive since they will help to weed out bad actors in the industry.
The BTC/USD price wavered as the US dollar index pulled back following another set of American inflation data. Numbers by the Bureau of Labor Statistics showed that the headline PPI declined from 8.4% in September to 8.0% in October. Core PPI declined from 7.1% to 6.7%.
Therefore, analysts expect that the Federal Reserve will start its pivoting journey in December. In it, the bank will hike interest rates by 0.50%, lower than the 0.75% it has increased in the past four meetings.
While monetary policy is an important factor for Bitcoin and other cryptocurrencies, the main catalyst for prices will be the FTX fallout. On Tuesday, it was revealed that most of the funds that were stolen recently from FTX were probably an inside job. At the same time, many exchanges have reported significant outflows as many investors exit the crypto industry.
The BTC/USD pair remained under pressure as most investors maintained their fear about the crypto industry. It was trading at about 16,720, which was lower than the important resistance level of 18,156. The bearish trend is supported by the 25-day and 50-day moving averages.
It has moved below the standard pivot point on the four-hour chart. Therefore, the pair will likely continue falling as sellers target the key support level at 15,000. A move above the standard pivot point at 17,633 will invalidate the bearish view.