Bullish view
Buy the BTC/USD pair and set a take-profit at 81,300.
Add a stop-loss at 75,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 81,300.
Bitcoin price remained under pressure on Monday as traders reacted to the first Bitcoin ETF outflows in 10 days and the tight financial situation after Kevin Warsh’s first statement at the Jackson Hole Symposium. The BTC/USD pair dropped to 78,146, down modestly from this month’s high of 81,331.
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Bitcoin Price Drops as Risks Rise
The BTC/USD pair dropped as investors sold risky assets after Jerome Powell’s statement at the Jackson Hole Symposium. This statement dragged top assets like gold and silver and US stocks downwards.
In his statement, Powell warned that inflation remained stubbornly high in the United States. Indeed, data released last week showed that the headline and core inflation numbers remained above 3% in July. Inflation has stayed above the Federal Reserve’s target of 2.0% in the last five years.
Following Powell’s statement, traders are now pricing in a situation where the Fed hikes interest rates in the December meeting. If this happens, rates will end the year between 3.75% and 4.0%.
The statement came as the Fed and the Treasury Department grapples with the elevated inflation and US debt. Data shows that the public debt has jumped to nearly $40.1 trillion, two weeks after it crossed the $40 trillion milestone.
The BTC/USD pair also dropped as investors reacted to the first Bitcoin ETF outflows. Data shows that these funds shed over $230 million in assets on Friday. Even so, this is the best month for these funds after they added over $3 billion in assets.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has pulled back in the past few days, moving it from 81,331 to the current 78,131. It is now hovering around the top of the treading range of the Murrey Math Lines.
On the positive side, the pair sits above the Major S/R pivot point of the Murrey Math Lines point of 75,000. It also remains above the 50-day Exponential Moving Average (EMA).
The pair is also forming a bullish ascending channel, which resembles a bullish flag, with the only difference being that the flag is an ascending channel. Therefore, the pair may resume the uptrend, pointing to more gains, potentially to the key resistance at 81,000. A drop below the key support level of 75,000 will point to more downside.
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