BTC/USD Forex Signal: Bitcoin Loses Key Support at $60,000
Bearish view
- Sell the BTC/USD pair and set a take-profit at 57,000.
- Add a take-profit at 62,000.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 62,000.
- Add a stop-loss at 57,000.
Bitcoin price retreated for the third consecutive day as the coin lost momentum. The BTC/USD pair dropped to a low of 59,000, down from last Sunday’s high of 64,995. It remains in a correction after falling by over 15% from its highest point this year.
Bitcoin’s performance happened even as the coin continued to see strong demand among investors. Data shows that spot Bitcoin ETFs continued to see inflows for the eighth consecutive day. It has already attracted over $18 billion in assets this year, higher than what most analysts were expecting.
Bitcoin’s retreat happened even as the US dollar index continued falling. The US dollar index (DXY) fell by over 0.26% to $100.47, its lowest point in months. In most cases, Bitcoin and other risk assets rise when the US dollar is falling.
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1Bitcoin has also diverged from American stocks, with the Dow Jones, S&P 500, and Nasdaq 100 indices nearing their highest points on record.
Looking ahead, Bitcoin will react to the upcoming Nvidia earnings, which will come out later today. These earnings will have an impact on stocks and cryptocurrencies because of Nvidia’s scale as the third-biggest company in the world. Strong results will likely lead to more upside as the market sentiment improves.
BTC/USD technical analysis
Bitcoin bounced back last Friday after Jerome Powell, the Federal Reserve chair pointed to the upcoming interest rate cuts. It rose to a high of $64,925, 32% above its lowest point this month.
The BTC/USD pair then started falling and has moved to the psychological point at 61,900. This is an important level because it has coincided with the 50-day and 100-day Exponential Moving Averages (EMA).
Looking back, we see that the BTC/USD pair has formed a series of lower lows and lower highs, meaning that sellers are gaining control. The Stochastic Oscillator has pointed downwards from the overbought level.
On the positive side, the Percentage Price Oscillator (PPO), a unique form of MACD indicator, has still pointed upwards, pointing to a bullish divergence.
Therefore, after falling below $60,000, there is a risk that Bitcoin will drop to the next key support level at 57,000.
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