Bullish view
Buy the BTC/USD pair and set a take-profit at 65,000.
Add a stop-loss at 55,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 55,000.
Add a stop-loss at 65,000.
Bitcoin price stabilized around the $60,000 level as ETF outflows continued and as investors anticipated more selling by Michael Saylor’s Strategy. The BTC/USD pair also remained under pressure after the Federal Reserve Chair gave a more hawkish outlook.
Bitcoin Price Pressured Amid ETF Outflows and Strategy Sales
The BTC/USD pair remained under pressure as data showed that American investors continued to sell their Bitcoin holdings last month. They dumped assets worth over $4.2 billion, the worst monthly performance on record. This happened as investors continued moving towards the booming stock market.
More Bitcoin selling could come from Strategy, the biggest Bitcoin holder. In a statement, the company said that it was considering selling coins worth over $1.5 billion to boost its cash reserves. His goal is to ensure that the company has the cash it needs to sustain its dividends and debt payments.
Still, on the positive side, a report by Glassnode shows that long-term holders have started to absorb the ongoing Bitcoin selling. This is hinting at the early stages of a bottoming process that could lead to higher prices in the near term. Also, the Crypto Fear and Greed Index remains in the extreme fear zone of 16.
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The BTC/USD pair also wavered as investors reacted to the upcoming US non-farm payrolls data. This report is expected to show that the economy created over 114k jobs last month as the unemployment rate remained at 4.3%. A higher-than-expected report will lead to a more hawkish Fed.
In a statement on Wednesday, Kevin Warsh hinted that the bank will do whatever it takes to bring inflation down. By this, he meant that the bank will not be in a hurry to cut interest rates since inflation remains at an elevated level.
BTC/USD Technical Analysis
The daily chart reveals that the BTC/USD pair has remained under pressure this week. It was trading at 59,930 on Thursday morning. This price is inside the range where it has remained at in the past few days.
The pair has remained below all moving averages, a sign that bears remain in control for now. On the positive side, it has formed a small double-bottom pattern whose neckline is at 67,100.
Therefore, the pair will likely bounce back, possibly to the key resistance at 65,000. A drop below the year-to-date low of 58,000 will point to more downside.
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