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Bitcoin price will likely remain in this range on Monday. A bearish breakout could see it drop to the next level at 25,760.
- Sell the BTC/USD pair and set a take-profit at 25,760.
- Add a stop-loss at 27,200.
- Timeline: 1 day.
- Set a buy-stop at 26,600 and a take-profit at 27,400.
- Add a stop-loss at 25,200.
Bitcoin price pulled back last week as a sense of fear spread in the financial market. The BTC/USD currency pair dropped from this month’s high of 27,477 to a low of 26,370. It is now hovering near the lowest level since September 15th.
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Investors are still growing fearful about the state of the global economy. The price of crude oil has jumped to the highest level in more than six months and analysts believe that the trend will continue.
There are fears of a government shutdown in the United States and auto workers are in their biggest strike in decades. Also, key prices like orange juice and live cattle have risen while the Panama Canal is in a crisis.
At the same time, the Federal Reserve is still in a hawkish mood. It decided to leave interest rates unchanged between 5.25% and 5.50%. The bank also hinted that it will hike rates later this year.
Therefore, investors are growing increasingly fearful. The fear and greed index has moved from the extreme fear level of over 80 a few months ago to the fear area of 36. Similarly, the crypto fear and greed index has also moved to the fear level.
As a result, American stocks have plunged recently while bond yields have risen to the highest level in years. Analysts believe that bond yields will continue rising in the coming months.
Therefore, while the BTC/USD pair has dropped recently, it has remained above 26,000, which is an important psychological level. As such, investors believe it has done well than stocks.
The BTC/USD pair has been under pressure in the past few days. Along the way, Bitcoin has dropped from $27,477 to 26,500. It has formed a small double-bottom pattern at 26,327. Along the way, the pair has dropped slightly below the 25-period and 50-period moving averages.
The Relative Strength Index (RSI) has dropped below the neutral point at 50. Therefore, Bitcoin price will likely remain in this range on Monday. A bearish breakout could see it drop to the next level at 25,760.
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