Bearish view
Sell the BTC/USD pair and set a take-profit at 55,000.
Add a stop-loss at 62,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 62,000.
Add a stop-loss at 55,000.
Bitcoin price remained under intense pressure as ETF outflows continued and as investors started positioning themselves for the upcoming sales by Strategy. The BTC/USD pair was trading at 58,800, down from last month’s high of 67,100.
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Bitcoin ETF Outflows and Strategy Sales
The BTC/USD pair has come under pressure as investors have continued dumping. Data shows that spot Bitcoin ETF outflows have accelerated in the past few months. These funds lost over $2 billion in May followed by over $4.2 billion in June. June was the worst month for these funds since their launch two years ago.
At the same time, there is a risk that Strategy will start selling some of its coins in the near term. In a statement on Monday, the company said that it will start selling some of its coins to boost its dollar reserves. It is doing this to stabilize its preferred stocks like STRC and STRD, which dropped below their par levels.
A decision by Strategy to sell Bitcoin will be a major one in the crypto industry as the company has spent years buying the coins. It has now accumulated over 800k coins and insists that it will never sell. Last month, Bitcoin dropped below $60,000 after the company sold 32 coins.
The BTC/USD pair has remained under pressure as investors have continued to rotate from the risky crypto market to stocks. Indeed, data shows that the stock market has continued doing well, with the top indices like the Nasdaq 100, S&P 500, and Dow Jones hitting their all-time highs.
The next key catalyst to watch will be the upcoming Kevin Warsh statement at the European Central Bank (ECB) forum and the US non-farm payrolls (NFP) report. These events will provide more information on what to expect from the Fed.
BTC/USD Technical Analysis
The daily chart reveals that Bitcoin price has slumped from a high of $82,687 in May to $58,700. It has formed an inverted cup-and-handle pattern, a common continuation sign.
The BTC/USD pair has moved to the lower side of the Bollinger Bands indicator. It also remains below the 50-day moving average. Therefore, the pair will likely continue falling as sellers target the key support level of 55,000. On the flip side, a move above the key resistance at 62,000 will invalidate the bearish outlook.
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