Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

BTC/USD Forex Signal: Bearish Trend Intact After Recent Dead Cat Bounce

Bearish view

  • Sell the BTC/USD pair and set a take-profit at 53,000.
  • Add a stop-loss at 59,000.
  • Timeline: 1-2 days.

Bullish view

  • Set a buy-stop at 57,000 and a take-profit at 60,000.
  • Add a stop-loss at 55,000.

BTC/USD Signal Today- 08/07: Bearish Trend Continues (Chart)

Bitcoin price stabilized during the weekend as the strong sell-off experienced on Friday last week. After dropping to 53,393, the BTC/USD pair bounced back to over 58,000 on Saturday. It was trading at 57,000 on Monday as traders waited for the next catalyst.

Bitcoin retreat fades

Bitcoin has been under intense pressure in the past few weeks as it faced numerous headwinds. First, there is the fact that Bitcoin has had no major headline in the past few months. The Securities and Exchange Commission (SEC) already approved 11 ETFs earlier this year while the halving event happened a few months ago.

Second, there are signs that wallets associated with Mt. Gox have started to move money. That means that Bitcoins worth billions could be liquidated in the coming months, which will lead to more supply.

Third, the German government has started moving Bitcoins in its portfolio in exchanges, which is a sign that it will start selling them soon.

Top Forex Brokers

    Further, many Bitcoin mining companies have started to capitulate and sell their Bitcoin holdings. All these events have led to more Bitcoin balances in exchanges, which is a negative sign for the coin.

    On the positive side, there is a likelihood that the Federal Reserve will start cutting interest rates later this year after last week’s jobs and PMI numbers from the United States. Rate cuts by the Fed would be a positive thing for Bitcoin and other risky assets.

    The other positive thing is that Joe Biden has committed to staying in the race for the US presidency. This is a positive sign since it raises the possibility that Donald Trump will win the presidency in November. Most crypto traders view Trump favourably in terms of regulations.

    BTC/USD technical analysis

    The BTC/USD pair formed a giant double-top pattern around the 72,000 level in the past few months. It dropped below this pattern’s neckline last week as it tumbled to a multi-month low of 53,393.

    Bitcoin formed a small hammer pattern on Friday, which explains why it rebounded on Saturday. This rebound was most likely a dead cat bounce, which happens when an asset in a downtrend sees a short-term rebound.

    Bitcoin remains below the 50-day and 200-day Exponential Moving Averages (EMA) while the Relative Strength Index (RSI) has moved below the neutral point at 50. Therefore, the path of the least resistance is downwards, with the next point to watch being at 50,000.

    Ready to trade our free daily Forex trading signals? We’ve shortlisted the best MT4 crypto brokers in the industry for you. 

    Crispus Nyaga
    About Crispus Nyaga
    Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.
     

    Most Visited Forex Broker Reviews