Bearish view
Sell the BTC/USD pair and set a take-profit at 72,660.
Add a stop-loss at 75,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 72,660.
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Bitcoin price remained under pressure as investors reacted to the strong US nonfarm payrolls (NFP) data and continued outflows from spot Bitcoin ETFs. The BTC/USD pair fell to 75,500, which is 13.6% below its October high.
Bitcoin Pressured After Strong NFP Data
The BTC/USD pair has remained under pressure in recent weeks, and that trend continued after the Bureau of Labor Statistics (BLS) released strong jobs numbers. The report showed the economy added 165k jobs, much higher than analysts expected. Also, the unemployment rate improved to 4.1%, raising the possibility that the Federal Reserve will hike interest rates in December.
Bitcoin also dropped after American investors continued selling their ETFs. Data shows that spot Bitcoin ETFs had over $411 million in outflows on Friday. The funds also shed $430 million on Thursday, bringing this month’s outflows to $1.28 billion.
Bitcoin ETFs have had cumulative inflows of $55.7 billion and now hold $95 billion in assets under management. Investors have sold Bitcoin funds because of the recent midterm elections in the United States, in which Democrats won by a large margin.
There is a fear that Democrats will tighten the screws on the industry. That includes intensifying investigations and also announcing major events. Also, it means that the Senate will not pass the CLARITY Act.
Bitcoin will next react to the upcoming US consumer inflation data. Economists expect the data to show that inflation cooled a bit last month. However, on an annual basis, inflation will likely remain above the 2% target. As a result, analysts expect the Fed to hike interest rates by 0.25% in the next meeting.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has retreated in the past few weeks, moving from a high of 87,420 in September to the current 75,720. Its current level is along the Major S/R pivot point of the Murrey Math Lines tool.
The pair has moved to the lower side of the descending channel. It has also dropped below the 50-day Exponential Moving Average (EMA) and the 38.2% Fibonacci Retracement level. Therefore, the pair will likely continue falling, potentially to the 50% retracement level of 72,700.
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