BTC/USD – The Possibility of a Bearish Breakout is There for the Pair
Take Profit: 22,000
Stop Loss: 24,500
Timeline: 1-2 days
Buy Stop: 24,100
Take profit: 25,200
Stop loss: 22,500
There were a lot of sideway movements happening for the Bitcoin pair in the past few days. The DXY rising along with the jump in bond yields is impacting the cryptocurrency market as a whole. The strong USD always pushes BTC down and the same thing is happening since the Dollar touched $105. Many market enthusiasts think that the US economy is still under recession threats and the coming months would be a critical time for the economic outlook.
The consumer inflation is still quite high and manufacturing PMI numbers have also come out to be positive with an increase. So, it would be correct to assume that the volatile assets like BTC and other crypto currencies will be under pressure until there are some fundamental changes happening in the favour of the Bitcoin market.
We saw the pair price forming a triple-top pattern on the 4H charts along with a drop below the 50-period EMA. The pair is most likely to see a bearish breakout based on the bearish flag pattern seen on the charts. The MACD and signal lines are keeping up with the rise with the histogram moving above the neutral point. But the RSI is giving mixed signals with the sideway movements.