Bullish view
Bearish view
Bitcoin retreated on Wednesday morning as concerns that the US might move to liquidate its vast holdings rose. The BTC/USD pair dropped to a low od 65,700, down from this week’s high of 70,000.The main catalyst for the ongoing Bitcoin sell-off is that the US might be considering selling some of its 220,000 holdings. On Monday, the government moved coins worth over $2 billion to custodial wallets.This movement came a few days after Donald Trump assured attendants in a conference that his administration would keep all coins it holds. He would also consider additional Bitcoin purchases to complement the country’s gold reserves.The movement also happened after the German government completed selling all of its Bitcoin holdings this month.Bitcoin’s price action also coincided with the ongoing technology stock sell-off. Nvidia shares slumped by over 8% on Wednesday while the Nasdaq 100 index fell by over 230 points on Tuesday. This price action is a sign that investors are getting concerned about risky assets.The drop also happened as the earnings season continued. Microsoft shares tumbled by over 6% in the extended hours after the company published weak cloud computing computing numbers.The next macro event to watch on Wednesday will be the upcoming Federal Reserve interest rate decision. A sign that the bank is focused on cutting interest rates will be a positive for the coin as it will lead to more demand for risky assets.
BTC/USD technical analysisThe daily chart shows that the BTC price has retreated in the past few days. This drop happened after the coin retested the important resistance point at 70,000 on Monday. It was both a psychological level and one that coincided with the descending trendline that connects its highest point since March 14.The pair has formed a shooting star candlestick pattern, a popular bearish reversal sign. On the positive side, Bitcoin has formed an inverse head and shoulders pattern and remained above the 50-day moving average.It has also formed a falling broadening wedge pattern. Therefore, the pair will likely bounce back in the next few days. More upside will be confirmed if it rises above the descending trendline and its highest swing this week.More By This Author:BTC/USD Forex Signal: Bitcoin Rally Has More Room To RunEUR/USD Forex Signal: Bearish Breakout Likely Ahead Of Fed DecisionGBP/USD Forex Signal: Volatility Ahead Of Fed And BoE Decisions
