Top Regulated Brokers
Bearish view
Sell the BTC/USD pair and set a take-profit at 60,000.
Add a stop-loss at 66,820.
Timeline: 1-3 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 66,820.
Add a stop-loss at 60,000.
The BTC/USD pair remained under pressure today, July 28, as traders waited for the upcoming Federal Reserve interest rate decision. Bitcoin dropped to $63,178, down modestly from this month’s high of 66,820.
Bitcoin Price Falls Amid Risk-Off Sentiment
The BTC/USD pair dropped a bit on Tuesday as a risk-off sentiment spread in the market. In Asia, top indices like the Nikkei 225 and Kospi dropped by over 4% as technology companies tumbled. Futures tied to the Dow Jones and Nasdaq 100 indices were in the red as investors waited for the upcoming big-tech earnings. Top companies like Meta, Microsoft, Apple, and Amazon will publish their numbers.
There will be some important catalysts in the market in the next few days. One of them will be the upcoming Federal Reserve interest rate decision. Economists expect the bank to leave interest rates unchanged in this meeting.
Besides, the US and Iran have not engaged in any attacks in the past few days, which has brought crude oil prices downwards. Also, the most recent data showed that consumer inflation dropped a bit in June. Still, in a note, Citadel analysts predicted that the bank may deliver a surprise hike in this meeting since inflation has remained above 2% in the last five years.
The BTC/USD pair remained under pressure even after Strategy maintained its Bitcoin holdings. While the company did not buy any coins, it also did not sell as some analysts feared. Instead, it sold shares to boost its balance sheet.
BTC/USD Technical Analysis
Bitcoin price has pulled back in the past few days, moving from a high of $67,000 to the current $63,188. Its highest point this month was notable as it coincided with the highest swing in June. As a result, it has formed what looks like a double-top pattern, a common bearish reversal sign.
The BTC/USD pair has remained below the 100-day Exponential Moving Average (EMA). It is also hovering above the ultimate support of the Murrey Math Lines tool.
Therefore, technicals suggest the pair will be bearish as long as it remains below the key resistance level of 66,820. As such, there is a risk that it will drop further to 60,000. On the other hand, a move above the key resistance level of 66,821 will invalidate the bearish outlook.