Bearish view
Bullish view
Bitcoin price rose in the overnight session as the recent fear in the crypto and stock market eased. The BTC/USD pair was trading at 56,780, up sharply from this week’s low of 49,000.This rebound happened as US equities pared back some of their Monday losses. The Dow Jones rose by 427 points while the tech-heavy Nasdaq 100 index jumped by 160 points.The rally also happened after the volatility in the financial market eased, with the VIX index falling by 28% after shooting higher by over 60% on Monday.Crypto investors watched the ongoing inflows in spot ETFs. Data shows that most spot ETFs had some inflows on Tuesday as investors and whales bought the dip.Still, sentiment in the crypto market is still cautious as concerns that the coin is in a downward trend. Besides, as shown below, it has formed a series of lower lows and lower highs in the past few months.A potential catalyst for Bitcoin and other cryptocurrencies is that the Fed could start cutting rates in September or even before if conditions worsen. Some analysts expect a jumbo rate cut in September. In most cases, cryptocurrencies thrive when the Fed turns dovish.
BTC/USD technical analysisBitcoin has been in a downward trend in the past few weeks. This retreat started after the BTC/USD pair peaked at 73,870 in March. Since then, the pair has continued to form a series of lower lows and lower highs.At the same time, the BTC/USD pair has formed a falling broadening wedge chart pattern, which is a popular bullish sign. It has moved below the 50-day and 100-day Exponential Moving Averages (EMA).The pair has dropped below the first support of the Andrew’s pitchfork tool, meaning that sellers are still in control. It is also trading along the lower side of the Bollinger Bands indicator.The Relative Strength Index (RSI) and the Relative Vigor Index (RVI) have continued pointing downwards. Therefore, there is a risk that the recent rebound was just a dead cat bounce and that the pair will resume the downward trend. If this happens, the pair could retest this month’s low of 49,000.On the flip side, a move above the resistance point at 58,000 will point to more gains as buyers target the resistance at 60,000.More By This Author:Walgreens Stock Yields 9.3%: Is It A Bargain Or A Value Trap? BTC/USD Forex Signal: Bitcoin Takes A Hit As Momentum EndsBTC/USD Forex Signal: Path Of Least Resistance Is Downwards
