Bearish view
- Sell the BTC/USD pair and set a take-profit at 84,000.
- Add a stop-loss at 90,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 84,000.
Bitcoin price remained in a tight range, where it has been stuck at in the past few weeks. The BTC/USD pair was trading at 87,145 on Tuesday morning, down sharply from the year-to-date high of 126,200.
Bitcoin has moved sideways as demand from retail and institutional investors has faded. Data shows that spot Bitcoin ETFs have continued shedding assets this month. The outflows have jumped to over $1 billion this month, a big improvement from last month’s $3.48 billion.
Spot Bitcoin ETFs have had a cumulative inflow of $56.62 billion, bringing their net assets to $113.53 billion. These funds had over $65 billion in inflows a few weeks ago.
Bitcoin’s retreat also coincided with heavy selling by some of the biggest players in the crypto industry, like Binance and Wintermute. This selling led to a 330% increase in liquidations, which reached over $300 million.
Bitcoin and the broader crypto market is yet to recover from a massive liquidation event that happened on October 10. Over 1.6 million traders experienced liquidations worth over $20 billion in a single day, triggering fear among market participants.
The BTC/USD pair will likely have a mild reaction to the upcoming Federal Reserve minutes, which will provide more information on the last monetary policy meeting.
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BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has remained in a tight range in the past few weeks. It remains much lower than the year-to-date high of 126,203.
The pair is in the process of forming a bearish pennant pattern, which is a common continuation sign in technical analysis. It has also remained below all moving averages.
Therefore, the pair will likely continue falling as sellers target the key support level at 80,000. A drop below that level will point to more downside, potentially to the support level at 75,000.
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