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Wednesday, August 17, 2022
HomeAnalysisMore Downside as Crypto Sentiment Fall

More Downside as Crypto Sentiment Fall

The BTC / USD pair may continue to decline as the bear targets support at 17,000.

Bearish view

  • Sell ​​BTC / USD pairs and set a take profit at 17,000.
  • Add stop loss at 22,000.
  • Timeline: 1-2 days.

Bullish view

  • Set the buy stop to 20,500 and the take profit to 22,000.
  • Add stop loss at 18,000.

As sentiment declined, the weekend BTC / USD pair was definitely below the key support of 20,000. As investors price more hawkish Federal Reserves, demand for Bitcoin and other high-risk assets is also struggling. It is trading at $ 19,100, about 41% below the June highs this year.

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Bitcoin Demand Wayne

BTC / USD pairs are declining sharply as investors are worried about the crypto industry. There was important news from the sector. For example, in June, Celsius, a major cryptocurrency bank, announced that it would suspend deposits and withdrawals. The company attributed this situation to a significant setback in all cryptocurrencies.

Last week, Three Arrows Capital announced that it was filing for bankruptcy. This happened when the company faced significant margin claims from major exchanges. As a result, this has made it a hedge fund focused on the largest cryptocurrency it underlies. The company lost most of its money when Terra and its ecosystem collapsed.

Meanwhile, in a statement, Voyager Digital, a major cryptocurrency exchange, announced that it would suspend withdrawals and deposits. The company is currently raising money to save the business.

Another big news is that BlockFi, which was once worth more than $ 4 billion, was acquired by FTX for about $ 25 million. Without relief, the company would probably go bankrupt.

Therefore, the BTC / USD pair fell sharply as investors continued to worry about holdings. Most of them are worried about whether their exchange will suspend withdrawals and deposits.

At the same time, the number of cryptocurrency buyers has dropped significantly. According to recent data, the number of people opening accounts on exchanges is declining significantly. The amount of Bitcoin traded has also declined recently. All this happened while the US dollar maintained a bullish trend.

BTC / USD forecast

The 4-hour chart shows that the BTC / USD price fell sharply in June. Shortly thereafter, the pair bounced and retested the key resistance at 21,888. I had a hard time moving up there. It is now retreating, trading at 19,110, just above last month’s low of 17,623.

The pair is also below the 25th and 50th moving averages. We have also moved between the 1st and 2nd support levels of the standard pivot point. therefore, The BTC / USD pair may continue to decline as the bear targets support at 17,000.

BTC / USD

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