Current trend

Last week, the BTC/USD pair resumed its decline and is currently trading around 57500.00: the world's leading cryptocurrency remains under pressure amid a significant strengthening of the US economy, which is helping the dollar grow, a fall in US technology stocks due to weak reporting, and the continued liquidation of BTC reserves by the management of the bankrupt Mt.Gox exchange, which intends to distribute 46.0 thousand tokens worth 2.7 billion dollars among affected clients by the end of the year. All this led to a net outflow of investments from the Bitcoin ETF, which amounted to 277.2 million dollars last week.

The long-term downtrend continues on the market, with BTC losing about 8.6% of its value in August. According to experts, the market is seeing active selloffs of crypto assets, allowing “whales” to accumulate them in their portfolios. According to the analytical company Santiment, last month the number of wallets containing more than 100.0 BTC increased by 283 to 16.2 thousand, which is the maximum in the last 17 months. It is traditionally believed that a significant accumulation of tokens by large players can precede a new price increase, but experts note that historically September is a weak period for the cryptocurrency market, in addition, it is not yet clear how BTC will react to the reduction in the US Federal Reserve interest rate. Some analysts expect that the easing of monetary policy will lead to an increase in risky assets, including digital ones, while others believe that such actions by officials have already been considered, so digital assets will not receive significant support.

Support and resistance

The price is trading within a downward channel and is now close to 56250.00 (Murrey level [2/8]), a breakdown of which will ensure continued decline to 53125.00 (Murrey level [1/8]), 50000.00 (Murrey level [0/8]). In case of a reverse breakout of the central line of Bollinger Bands (60400.00), a resumption of growth to 62500.00 (Murrey level [4/8], the upper boundary of the downward channel) and 65625.00 (Murrey level [5/8]) will be possible.

Technical indicators do not give a clear signal: Bollinger Bands are horizontal, MACD is increasing in the negative zone, and Stochastic is horizontal near the oversold zone.

Resistance levels: 60400.00, 62500.00, 65625.00.

Support levels: 56250.00, 53125.00, 50000.00.

Trading tips

Short positions can be opened below 56250.00 with targets at 53125.00, 50000.00 and a stop-loss at 58400.00. Implementation period: 5–7 days.

Long positions can be opened below 60400.00 with targets at 62500.00, 65625.00 and a stop-loss at 58800.00.