BTC/USD – The Risks Are There but Can Expect a Relief Rally for the Pair
Sell Stop: 26,900
Take Profit: 25,000
Stop Loss: 29,000
Timeline: 1- 2 days
Buy stop: 28,200
Take profit: 30,000
Stop loss: 26,000
The concerns surrounding the cryptocurrency world caused a decline to the lowest level since 25th April for the Bitcoin pair. It touched a price of 27,200 which was more than 11% drop from the peak price of the pair which suggests the BTC market might have entered a correction zone for now. One major crisis going on in the crypto market is the congestion that has resulted in a sharp rise in transaction fees for major cryptos like BTC and Ether.
A major exchange even paused withdrawals of BTC for addressing the issue which has been resumed as of now. On a fundamental level, the meeting between Biden and McCarthy will stir some waves and the US inflation numbers release is another thing to look forward to for the BTC/USD pair.
Liechtenstein Govt also announced their decision to accept Bitcoin as a payment for state services and they even have plans to invest govt funds in cryptocurrencies. The banking sector crisis had indirectly benefited Bitcoin but the issues getting subsided and the banking industry regaining momentum also led to a price drop for BTC. Looking at the charts, we could only see a bearish trend which has been there for the past few days and the pair seems to be moving towards the lowest point on 24th April, which is als the key support level at 26,950. The pair has moved below the 25 day and 50 day EMAs and the RSI has also shifted beneath the oversold level. If the congestion fears fade, the pair is likely to go through a relief rally which would lead to a retest of the key support level at 29,000. But also watch out for a drop below 26,950 as it would mean that the pair may keep falling to the next psychological level at 25,000.