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BTC/USD Forex Signal: Bitcoin Downtrend Could Continue

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 59,000.
  • Add a stop-loss at 53,635.

BTC/USD Signal Today- 09/07: BTC Downtrend Continues (Chart)

Bitcoin price remained under pressure on Tuesday morning as concerns about the liquidations by the German government and Mt.Gox wallets. The BTC/USD pair was trading at 56,350, a few points above last week’s low of 53,630.

Bitcoin liquidations continue

Bitcoin price continued falling this week as investors focused on the ongoing liquidations by whales, the German government, and accounts associated with Mt.Gox.

The German government has been actively selling coins in the past few weeks, a move that has led to substantial volume in exchanges. It sold coins worth $900 million on Monday and the trend could continue. Accounts associated with Mt.Gox have also started moving coins recently.

The BTC/USD pair also stabilised as the US dollar index (DXY) retreated, reaching a low of $105, its lowest point since June 13th. In most cases, Bitcoin tends to rise when the US dollar retreats.

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    The dollar has dropped as signs emerged that the Federal Reserve could start cutting interest rates later this year. The recent data showed that the ISM manufacturing services PMIs dropped below 50 in June.

    Another report showed that the economy created 202k jobs while the unemployment rate rose to 4.1%. Therefore, with the economy slowing, the Federal Reserve may start cutting rates as soon as in September.

    The key event to watch will be the upcoming statement by Jerome Powell, the head of the Fed. A sign that the bank will cut interest rates will be a positive thing for Bitcoin and other risky assets.

    BTC/USD technical analysis

    The daily chart shows that Bitcoin price found a substantial resistance at $72,640. It failed to move above this level since April. It has formed a double-top pattern whose neckline is at 56,350. In most cases, this pattern is one of the most bearish signs in the market.

    The pair has moved below the 50-day and 200-day Exponential Moving Averages (EMA). It has remained at the 38.2% Fibonacci Retracement point, which is also the neckline of the double-top pattern.

    Bitcoin’s volume has been falling in the past few days while the Relative Strength Index (RSI) has dropped to the oversold level. The Stochastic oscillator has moved near to the oversold level.

    Therefore, the BTC/USD pair will likely continue falling as sellers target the next key support at 53,000.

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    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.
     

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