BTCUSDT: Tightening Environment Continues to Exert Pressure, with Relatively High Risk of Breakdown

Summary:

The Federal Reserve (Fed) is aggressively tightening monetary policy, and expectations of rising interest rates continue to suppress risk assets such as cryptocurrencies. Then, there is a risk that bitcoin will continue to break down.

SELL BTC-USDT

Close Time

CLOSED

19500.0

Entry Price

15000.0

21000.0

78346.1 +205.9 +0.26%

308.0

Pips

Profit

15000.0

19192.0

Exit Price

19500.0

Entry Price

21000.0

Fundamentals

The market expects the Fed to raise rates by 75 basis points this week. Some institutions have already raised the Fed's terminal rate target for the year to 4.5%. This means that there will continue to be significant rate hikes in the coming period. Other central banks are quickly following the Fed's pace of rate hikes, which also increases the downside risk to the global economy. For reasons of risk aversion, there is a risk that risk assets such as US stocks and cryptocurrencies will continue to be sold off.

In addition, the sentiment in the cryptocurrency market has been weak recently, with less active trading overall. Bitcoin appears to be at the threshold of a new round of falls.

Technical Analysis

BTCUSDT: Tightening Environment Continues to Exert Pressure, with Relatively High Risk of Breakdown _1

The daily chart shows that BTCUSDT has continued its trend of oscillating and pulling back and has fallen below the key support level of 19500. However, the continuation of the fall is not strong. BTCUSDT is oscillating and adjusting around 18700 and appears to accumulate momentum for a new round of bearish trends.

BTCUSDT: Tightening Environment Continues to Exert Pressure, with Relatively High Risk of Breakdown _2

In the 4H chart, the BTCUSDT range trade between 18700 and 19500 in the short term. Meanwhile, the indicator RSI is below 50. The trend of BTCUSDT is weak, and it can fall further to test or even break below the key support level around 18700 in the future. Once BTCUSDT breaks below the level, it will open further room to fall and can fall towards 15000 in the future.

It is recommended to go short at highs. You can try to go short with small positions when the price rallies to around 19500 and then stabilize. The target is set near the support level of 15000, with a stop-loss set above 20500.

Trading Recommendations

Trading direction: Short

Entry price: 19500

Target price: 15000

Stop loss: 21000

Support: 18700/18000

Resistance: 19500/20500

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