Current trend

At the beginning of the month, the BTC/USD pair began a corrective decline and today is trying to consolidate below 62500.00 (Murrey level [4/8]).

The price is under pressure due to the weakening attention to the first cryptocurrency from its large holders. According to experts, they are trying to minimize risks, as evidenced by a sharp decrease in large (over 100.0K dollars) transactions. The analytical company Santiment reports that it has decreased by 42.0%, reaching approximately 10.0K in the last two days.

Meanwhile, the trend of investment outflow from Bitcoin ETFs also continues. Last week, the funds lost more than 544.0M dollars. However, most experts believe the upward trend will recover in the medium term due to an overall positive background. They expect the launch of new exchange instruments based on Ethereum and, possibly, several other digital assets, as well as the US Fed’s easing monetary policy, expected by experts by the end of the year, would support the leading cryptocurrencies.

Support and resistance

Technical indicators reflect the formation of a downward trend: Bollinger bands and Stochastic reverse downwards, and the MACD histogram is increasing in the negative zone.

After a consolidation below 62500.00 (Murrey level [4/8]), the trading instrument will fall to the region of 59375.00 (Murrey level [3/8]) and 56250.00 (Murrey level [2/8]). In case of a breakout of the key “bullish” resistance zone of 66700.00–65625.00 (middle line of Bollinger Bands, Murrey level [5/8]), the price will grow to the area of ​​68750.00 (Murrey level [6/8]) and 71875.00 (Murrey level [7/8]). However, it seems a less likely scenario.

Resistance levels: 66700.00, 68750.00, 71875.00.

Support levels: 59375.00, 56250.00.

Trading tips

Short positions may be opened from 61800.00, with the targets at 59375.00, 56250.00, and stop loss of 63500.00. Implementation period: 5–7 days.

Long positions may be opened above 66700.00, with the targets at 68750.00, 71875.00, and stop loss of 65000.00.