Bearish view
Sell the BTC/USD pair and set a take-profit at 70,000.
Add a stop-loss at 81,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 81,000.
Add a stop-loss at 70,000.
Bitcoin price retreated further on Tuesday, reaching its lowest level since May 1 this year. The BTC/USD pair slipped to 76,335, down modestly from this month’s high of 82,553. This retreat may continue as Bitcoin faces some major headwinds.
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Bitcoin Price Falls as Challenges Rise
The BTC/USD pair remained under pressure this week as it plunged to its lowest level this month. This retreat continued as American investors continued dumping their spot BTC ETFs on Monday. As a result, these funds have now lost over $1.2 billion since last week.
Falling ETF inflows is a sign that demand in the United States is falling. At the same time, the closely-watched Coinbase Premium Index has remained in the red this month. This is a sign that demand from American investors continues to wane, possibly as many of them focus on the booming artificial intelligence trend.
Bitcoin price has also retreated amid the rising bond yields. Data shows government bonds have plunged, with the yields rising to the highest level in years. As a result, there are concerns that the Federal Reserve will maintain a more hawkish tone this year. Bitcoin tends to do well when the bank is cutting rates.
Bitcoin’s liquidations have jumped this week. Bullish positions worth over $700 million have been shut this week as its retreat has continued. Liquidations happen when crypto exchanges close positions when the margin level is reached.
Still, on the positive side, Michael Saylor continued his buying spree last week, adding over 24k coins. He has hinted that Strategy will continue its buying spree in the coming years, with most of the funds being raised by selling STRC shares.
Another positive is that the Senate Banking Committee voted for the CLARITY Act last week. They did that in a bipartisan manner, raising the possibility that the full Senate will pass it.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has been in a downward trend. It has fallen in the last four consecutive days and is now in the lowest level since May 1.
Bitcoin has moved below the lower side of the rising wedge pattern, a common bearish reversal sign. It has also dropped below the 50-day moving average and is slightly above the 23.6% Fibonacci Retracement level.
Therefore, the coin will likely continue falling as sellers target the key support level at 70,000. On the flip side, a move above the key resistance at 80,000 will invalidate the bearish outlook.
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