Bullish view
- Buy the BTC/USD pair and set a take-profit at 96,000.
- Add a stop-loss at 89,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 89,000.
- Add a stop-loss at 96,000.
Bitcoin price continued its strong downward trend and is hovering near its lowest level since February 3 and is about 15% below the highest point this year. The BTC/USD pair plunged to a low of 93,000, moving further lower than the year-to-date high of $109,200.
Top Forex Brokers
Bitcoin price crash continues
The BTC/USD pair crashed even after several important notable events in the crypto industry. For example, the FTX Estate has started distributing about $12 billion from the collapsed exchange. Analysts anticipate that some of these funds will find their way to cryptocurrencies, especially Bitcoin.
Bitcoin also dropped after Texas continued hearings on creating a Strategic Bitcoin Reserve, a move that may lead to more demand for the coin. Analysts expect that the state will become the first one to have Bitcoin in its reserves. Other states like Alabama and Wyoming are considering the same.
Donald Trump is also considering creating these reserves, which will mirror the strategic petroleum and gold reserves that the government holds. While positive, it is unclear whether it will lead to more Bitcoin purchases since the government may decide to use the seized coins for that.
The ongoing Bitcoin price retreat is likely because of the hawkish Federal Reserve and trade tensions. The Fed has hinted that it will hold interest rates steady for a while because inflation remains stubbornly high. Bitcoin often underperforms the market when the Fed has embraced a more hawkish tone.
The BTC/USD pair has also dropped because of the ongoing concerns about tariffs and their impacts on the global economy. Trump has pledged to impose tariffs on European, Mexican, and Canadian goods. Such tariffs will likely lead to more volatility in the financial market.
BTC/USD technical analysis
The daily chart shows that the BTC/USD pair has been in a strong downward trend in the past few days. It has dropped from its all-time high of 109,120 to 93,500 and is nearing the lowest levels since February 2nd.
The pair has moved below the 50-day moving average. Also, the Relative Strength Index (RSI) and other oscillators have continued to drop. On the positive side, these oscillators are nearing their oversold levels. Also, Bitcoin has formed a megaphone pattern, a bullish continuation sign.
This means that the coin may drop to 90,000 and then resume the upward trend in the coming weeks.
Ready to trade our daily Forex signals? Here’s a list of some of the best crypto brokers to check out.