There is a possibility that the pair will continue falling ahead of the upcoming US consumer inflation data.

Bearish View

• Sell the BTC/USD pair and set a take-profit at 29,370.
• Add a stop-loss at 42,000.
• Timeline: 2 days.

Bullish View

• Set a buy-stop at 32,961 and a take-profit at 34,000.
• Add a stop-loss at 29,370.

The BTC/USD declined to the lowest level since July 23rd this year, which was about 52% from its highest level last year. Other cryptocurrencies and stocks have also sold-off dramatically, with the total market cap of all digital coins falling to about $1.5 trillion.

Cryptocurrency Currencies Sell-Off

Bitcoin price has been in a strong sell-off recently as worries about the Federal Reserve, US inflation, and recession continued. Other financial assets have also sold-off. For example, the tech-heavy Nasdaq 100 index has declined by 26% from its highest point in November. Similarly, the Dow Jones index has fallen by 12% in the same period.

Even the so-called safe assets have all declined. Gold has plummeted by 10% from its highest point in February while Treasuries have also fallen. The 10-year and 30-year Treasury Yields have risen to the highest levels in over 3 years. Bond yields are usually inverse to prices.

The sell-off accelerated when the Federal Reserve published a hawkish decision last week. In a statement, the bank said that it was hiking interest rates by 0.50%. At the same time, it warned that more 50 basis point hikes were on the way as it continues battling the soaring consumer price index data.

The BTC/USD pair has also declined because of the increased selling by many holders who are giving up on hopes that it will retest its all-time high. Besides, the unlimited liquidity that existed in 2021 has faded. For one, the US and other European countries are no longer providing the stimulus checks that they gave out last year.

All these factors have pushed investors to the safety of the US dolla. Indeed, the dollar index has been in a strong uptrend and is currently trading at the highest point since 2002.

BTC/USD Forecast

The daily chart shows that the BTC/USD pair has been in a strong downward trend in the past few months. The sell-off accelerated when the pair moved below the important support level at $32,961, which was the lowest level on January 24th. The pair has moved below the Ichimoku cloud and the 25-day and 50-day moving averages.

Therefore, there is a possibility that the pair will continue falling ahead of the upcoming US consumer inflation data. As a result, the next reference level to watch will be at 29,370.

DOT/USD has taken another turn lower and is clearly within sight of important support levels, which speculators may consider critical inflection points.

DOT/USD is trading below the 17.0000 mark as of this writing and if the cryptocurrency cannot rise and sustain its value over this level, this inability may set off alarm bells among speculators. On the 21^st of April DOT/USD had climbed to nearly 19.7000 after testing lows slightly above the 17.0000 mark for a handful of days before. Yesterday’s trading took DOT/USD below the 16.5000 ratio momentarily, which challenged values not seen since the 8^th of March.

The broad cryptocurrency market remains nervous and Polkadot is certainly mirroring the rather weak results as support levels considered critical are being monitored in many digital assets. DOT/USD was able to reverse higher after hitting its lower values on Wednesday, but the buying has not been exuberant and traders who believe more downside action could develop are likely watching. If DOT/USD starts to make support near the 16.9000 and 16.8500 prices appear ready to falter, it is conceivable that 16.7500 to 16.5000 would become legitimate targets.

While bullish traders may believe upside reversals can be attained, they may want to stay rather cautious and not look for over ambitious results higher. The short term has shown plenty of resistance above, and the 17.2500 mark almost feels far away in early trading. However, if this relatively close resistance mark is penetrated, traders may feel obligated to wager on further upside to the 17.4500 to 17.5500 ratios. It does appear any move above 17.7500 in the short term would be rather surprising.

DOT/USD is currently fighting for equilibrium below 17.000 and if the cryptocurrency continues to traverse near these critical lows and again moves towards yesterday’s depths, this would be a negative signal.  If the lower values are flirted with in the short term, it could mean a significant test of values not seen since the first week in March are about to be exhibited.

Cautious traders may believe downside pressure is going to continue and want to wait for some upside movement before igniting their short positions. However, if DOT/USD lingers near its current price of 16.9500 and lower, than it may be worthwhile to look for downside momentum sooner rather than later. The trend downwards in DOT/USD has been rather consistent. Traders should use conservative amounts of leverage and stop losses, but wagering on lower prices in DOT/USD may be the logical decision near term.

Polkadot Short-Term Outlook

Current Resistance: 17.2100

Current Support: 16.5200

High Target: 17.8700

Low Target: 15.8100

ADA/USD has been volatile in early trading this morning, this after a downturn which started on the 5^th of April built up speed.

ADA/USD may have speculators sitting on the edges of their seats early this morning.  After testing the 1.24750000 mark on the 4^th of April and coming within sight of very important resistance levels last sincerely traded in abundance around the 7^th of February, Cardano has taken a detour lower. ADA/USD saw its selloff build additional momentum in early trading today when it busted through the 1.05000000 level and tested the 1.03810000 ratio briefly.

However since hitting lows this morning which were last seen on the 23^rd of March, ADA/USD has held firm and actually reversed slightly higher. The current price of Cardano is trading near the 1.08800000 mark and appears to be steady for the moment. The broad cryptocurrency market has also taken on a negative tone the past couple of days. Traders will have to decide if this is a temporary downturn being spurred on by some residual nervousness, profit taking, or an actual indicator more bearish trajectory will be witnessed near term.

ADA/USD remains staunchly within sight of it highs when looking at a one month chart.  While the distance is not entirely close, the 1.25000000 juncture which was tested but not punctured from the 28^th of March until the 4^th of April may still attract optimistic bullish traders. A belief that the sudden downturn in ADA/USD produced the past few days of trading may be a natural reaction to highs being enjoyed again is not farfetched. If Cardano can consolidate in its current price vicinity this may attract the attention of speculators.

Certainly support ratios near the 1.0700000 mark should be watched, and if it falters and a retest of lows seen early this morning reemerges, this would be a negative short term signal.  But if the 1.0850000 mark can prove durable short term and trading doesn’t go much lower than this target, then buyers may feel compelled to step in again and search for additional reversals higher.

After suffering a long bearish trend, traders of ADA/USD cannot be blamed for being cautious and they should be. However, Cardano has seen a rather solid bullish trend emerge since the middle of March, and its selloff the past couple of days may prove to be a temporary setback based on profit taking by short term speculators. Stop losses and conservative leverage should be used, because volatility may be abundant in the near term.

Cardano Short-Term Outlook

Current Resistance: 1.08930000

Current Support: 1.07250000

High Target: 1.13520000

Low Target: 1.02210000