Bearish view
Sell the BTC/USD pair and set a take-profit at 68,000.
Add a stop-loss at 80,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 80,000.
Add a stop-loss at 68,000.
Bitcoin price continued its downward trend, moving to its lowest level in over a month as ETF outflows continued and odds of a hawkish Federal Reserve jumped amid the stubbornly high inflation. The BTC/USD pair was trading at 76,550 on Monday, down sharply from this month’s high of 82,553.
Top Regulated Brokers
Bitcoin Price Under Pressure as Risks Rise
The BTC/USD pair continued its downward trend amid rising risks. One of the top risks is that investors have continued to sell their BTC ETF holdings. Data shows that these investors have dumped their assets in the last seven consecutive days.
As a result, they have had over $1 billion in outflows, erasing the gains made earlier this month. These funds had experienced substantial inflows in the previous two months. Rising outflows is a sign that investors continue selling their coins as they expect the price to fall.
Macro factors are contributing to the ongoing Bitcoin weakness. For example, recent data shows that inflation continues rising, with the headline Consumer Price Index (CPI) rising to 3.8% and the Producer Price Index (PPI) soaring to 6%. This increase has driven US bond yields to the highest point in years.
Therefore, some top Federal Reserve officials have started warning that interest rates will need to start rising this year. The most notable of them was Christopher Waller, whom Trump considered as his Fed Chair pick. In a statement on Friday, he changed his tune and hinted that the bank may need to hike if inflation continues rising.
Higher interest rates normally hurt risky assets like Bitcoin and stocks. A good example of this is what happened in 2022 when the coin plunged as the Federal Reserve hiked rates.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has remained under pressure in the past few weeks. It has already crashed to its lowest level since April 20th this year, continuing a downtrend that started on May 11.
The coin has moved below the lower line of the rising wedge pattern, a common bearish reversal sign in technical analysis. It also dropped below the 50-day and 25-day moving averages.
Therefore, the pair will likely continue falling, potentially to the next key support level at 70,000. A move below that level will point to further downside, potentially to 60,000.