Bearish Breakout Points to Drop to 37K

[ad_1]

There is a likelihood that this sell-off will continue in the coming days as bears target the next key support at 37,000.

Bearish View

  • Sell the BTC/USD pair and set a take-profit at 37,000.
  • Add a stop-loss at 42,000.
  • Timeline: 1-2 days.

Bullish View

  • Set a buy-stop at 41,000 and a take-profit at 42,000.
  • Add a stop-loss at 39,000.

The BTC/USD pair dropped below the support at 40,000 support as investors focus on the ongoing bank earnings season continued. The pair is trading at 38,880, which was the lowest level since March 16th.. This price is about 15% below the highest level this month.

Advertisement

Bank Earnings Season

Bitcoin tends to show some volatility during the bank earnings season. Historically, many banks have made some announcements about Bitcoin when they are delivering their quarterly earnings.

Last week, several banks, including Goldman Sachs, JP Morgan, and Citigroup delivered their quarterly results. These banks did not make any announcement about their crypto initiatives.

However, Blackrock, the biggest asset manager in the world with over $10 trillion of assets made an announcement. The company joined with Fidelity to make an investment in Circle, the company that owns the USD Coin (USDC). The funding was $400 million and valued the firm at over $9 billion. USD Coin is the second-biggest stablecoin in the world after Tether.

There are other Wall Street banks that are scheduled for making announcements this week, including Bank of America and Schwab.

Another major event was the decision by Elon Musk to start a bid for Twitter, one of the biggest social media companies in the world. He proposed to buy the company for about $43 billion. During the weekend, Twitter announced that it had launched a poison pill in a bid to prevent Musk from acccumulating 15% stake in the company.

Musk’s acquisition of Twitter would be positive for the company. For one, Musk is one of the biggest supporters of cryptocurrencies like Bitcoin and Dogecoin. In a recent tweet, he suggested that Twitter should start accepting Dogecoin for its subscription solutions. Therefore, there is a likelihood that the BTC/USD pair will react to any announcement about the deal.

BTC/USD Forecast

The BTC/USD pair has been in a tight range in the past few days. It is trading at 38,882, which is at the lowest level since March. It has also moved below the 25-day and 50-day moving averages while the MACD is pointing downwards.

The pair has also moved below the lower side of triangle pattern. Therefore, there is a likelihood that this sell-off will continue in the coming days as bears target the next key support at 37,000.

BTC/USD

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 xMetaMarkets.com. All Rights Reserved.