Bearish view
Sell the BTC/USD pair and set a take-profit at 60,000.
Add a stop-loss at 70,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 70,000.
Add a stop-loss at 60,000.
Bitcoin price remained in a tight range on Wednesday morning as the recent rally stalled amid profit-taking and as investors waited for the upcoming Federal Reserve interest rate decision. The BTC/USD pair retreated to 65,695 from this week’s high of 67,200.
Bitcoin Price Rally Stalls Ahead of Fed Decision
The BTC/USD pair wavered after the recent rally stalled. It had previously jumped from a low of 59,000 in June to a high of 67,200 as hopes of a US-Iran deal to end the war rose.
The ongoing consolidation is happening ahead of the upcoming Federal Reserve interest rate decision that comes out later today. Economists are unanimously waiting for the bank to leave interest rates unchanged between 3.50% and 3.75%.
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After that, the opinion among analysts on what the bank will do is mixed. Some analysts believe that the bank does not need to cut interest rates this year as inflation remains at an elevated level. Some, however, believe that the bank will decide to hike rates. In a statement on Tuesday, Ken Griffin’s Citadel predicted that the bank will hike rates later this year.
The BTC/USD pair has also wavered amid weak flows to Bitcoin. Data shows that spot Bitcoin ETF are still seeing substantial outflows this week, possibly as investors continue rotating to the stock market. For example, top indices like the S&P 500 and Nasdaq 100 indices continued soaring this week.
Spot Bitcoin ETFs have had over $4.3 billion in outflows in the past two months. On the other hand, the Vanguard S&P 500 Index has gained over $125 billion this year, with its total assets jumping to over $1 trillion. It has become the first fund to hit that milestone.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has come under pressure in the past few months. It has slipped from a high of 82,823 in May this year to a low of 59,000.
It then bounced back and hit a barrier at 67,120 this week. Technicals suggest that Bitcoin is not out of the woods yet. For one, bulls have not succeeded in crossing the 100-day Exponential Moving Average (EMA).
Bitcoin has also formed an inverted cup-and-handle pattern. It is now in the handle section of this pattern. Therefore, the pair will likely resume the downtrend, potentially to the key support level of 60,000.
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