Bullish view
Buy the BTC/USD pair and set a take-profit at 65,000.
Add a stop-loss at 54,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 54,000.
Add a stop-loss at 65,000.
Top Regulated Brokers
The BTC/USD pair has remained inside a tight range on Monday as investors reacted to several moving parts in the crypto industry. Bitcoin was trading at $60,000 inside a narrow range it has remained at in the past few days. It remains much lower than the all-time high of $126,300.
Bitcoin Pressured by Key Risks
The BTC/USD pair has come under pressure in the past few days as investors react to some major events. One of the key risks is that Strategy, the biggest Bitcoin holder is facing substantial pressure that may force it to sell its Bitcoin in an extreme situation.
Strategy is facing a major challenge amid the ongoing balance sheet woes. It now has over $1.4 billion in cash, against annual dividend requirements of over $1.7 billion. This means that the company will need to either sell shares in MSTR or sell its Bitcoin. BTC price crashed below $60,000 when it sold its Bitcoin earlier this month.
The BTC/USD pair is also struggling because of the soaring ETF outflows as investors rotate from Bitcoin to the stock market. Data shows that these funds shed over $444 million in assets on Friday, bringing the monthly outflow to over $4.06 billion. This selling is happening as investors rotate from Bitcoin to the stock market.
Bitcoin is also struggling as the US dollar remains at an elevated level amid hopes that the Federal Reserve will need to hike interest rates. In a statement on Friday, Raphael Bostic, a top Fed official, hinted that the bank will need to hike rates, even as inflation shows signs of slowing. Crude oil and other commodities have slumped in the past few weeks. This could change as tensions between the US and Iran rise.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has been in a slow downtrend in the past few weeks. It initially dropped below the key support of 60,000 earlier this month and then bounced back to 67,100, where it found substantial resistance.
Bitcoin then retreated to the current $60,045. It has remained below the 50-day moving average. On the positive side, it has formed a double-bottom pattern with a neckline at 67,100. Also, the MACD and the Relative Strength Index (RSI) have pointed upwards. Therefore, the price will likely bounce back, potentially to 65,000 in the near term. There is also a risk that the price will drop to 50,000.
Ready to trade our free Forex signals? Here are the best MT4 crypto brokers to choose from.