Bearish view
Sell the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 85,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 85,000.
Add a stop-loss at 75,000.
Bitcoin's price remained under intense pressure on Monday as investors embraced a risk-off sentiment amid ongoing market jitters. The BTC/USD pair traded at 80,828, well below the year-to-date high of 87,365, as investors focused on the upcoming Federal Reserve interest rate decision and next week’s midterm elections.
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Bitcoin Price on Edge as Market Jitters Continue
BTC/USD pair has sold off in the past few weeks, moving from this month’s high of 87,360 to about 80,000. The sell-off has been caused by the ongoing jitters in the market, with crude oil prices continuing their upward trend. Brent, the global benchmark, is approaching $120, while the West Texas Intermediate (WTI) rose to $103.
Oil prices have jumped as investors predict that the US and Israel will restart their attacks against Iran in the coming weeks after the elections end. Another round of attacks will likely be more severe than the last one, with both sides expected to target energy infrastructure. Higher oil prices mean that inflation will be sticky, pushing the Federal Reserve to hike interest rates.
Bitcoin has also wavered because of the ongoing developments in the ETF market, where inflows have been uneven. These funds have shed over $174 million this month after they added over $6 billion in assets in the previous three months.
The next important catalyst for the BTC/USD pair will be the upcoming Federal Reserve interest rate decision. Economists expect the bank to leave interest rates unchanged between 3.75% and 4%, and hint that it will hike again in the December meeting.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has been under pressure in the past few weeks. It has dropped from a high of 87,365 earlier this month to the current 80,828.
The pair has moved below the important support level of 82,758, its highest point in May this year. Also, the pair has remained at the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has dropped below the neutral level of 50.
Therefore, the pair will likely continue falling in the near term, potentially to the key support level of 75,035, its lowest level in September. A move above the resistance level of 82,760 will invalidate the bearish outlook.
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