Monitoring the Dynamic Moves of 50-Day SMA

Cryptocurrency

Summary:

The cryptocurrency market cap has declined by 3% to $2.4 trillion, erasing some of the gains made during recent Bitcoin-related events. Investor hesitancy this week is attributed to expectations surrounding major central bank interest rate decisions and the upcoming US jobs report on Friday.

BUY BTC-USDT

Close Time

CLOSED

61188.2

Entry Price

71962.0

57000.0

117758.2 +646.2 +0.55%

4188.2

Pips

Loss

57000.0

56982.0

Exit Price

61188.2

Entry Price

71962.0

Fundamentals

On Monday, Bitcoin briefly surpassed the $70,000 mark but faced a strong sell-off, peaking during the Asian trading session on Tuesday and falling below $66,000.

Reports indicate that the US government has put 30,000 bitcoins, worth approximately $2.1 billion, into circulation, adding pressure to the market. This raises questions about whether this is a trend following the Mt. Gox and German government Bitcoin sales, a preemptive move before a potential ban by the Trump administration, or simply even an effort to sell at "high prices." Further transactions will provide clarity. It is believed that there are over 203,000 bitcoins on the balance sheet, which, if sold in bulk, could flood the market.

Monitoring the Dynamic Moves of 50-Day SMA_1

Technical Analysis

Technically, Bitcoin still has the potential for further upside as the latest round of increases occurred after a period of consolidation, which alleviated overbought conditions and broke through the resistance of the downtrend channel.

If the bulls attempt to erase the recent losses, the April resistance level of $67,270 may initially limit the upward movement. Breaking through this level could see prices retesting the recent monthly high of $70,015. Surpassing this range may pave the way for the double-top area of $71,955 observed from May to June.

Overall, Bitcoin prices faced selling pressure over the past few trading days and reached an overbought state during its recent rally. Looking ahead, the outcome of the 50-day SMA test may determine Bitcoin's next move.

Trading Recommendations

Trading Direction: Buy

Entry Price: 61200

Target Price: 71962

Stop Loss: 57000

Valid Until: 2024-08 - 16 23:55:00

Support: 63277, 62349, 60456

Resistance: 66803, 684736, 70069

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