Short-Term Selling Pressure Persists

Summary:

Bitcoin is experiencing a tug-of-war between bulls and bears, with consolidation as the main trend. Given the downside risks linked to US stocks, caution is advised against sudden selling pressure.

SELL BTC-USDT

Close Time

CLOSED

83253.6

Entry Price

80000.0

85400.0

64984.0 -112.0 -0.17%

253.6

Pips

Profit

80000.0

83000.0

Exit Price

83253.6

Entry Price

85400.0

Fundamentals

Although the latest US inflation data (February CPI at 2.8%) came in below expectations, the upcoming March FOMC meeting made markets cautious about rate cut expectations. Moreover, with the escalating trade tensions due to Trump's tariff policies, funds are flowing into safe-haven assets, putting pressure on Bitcoin as a high-risk asset.

Additionally, according to IMF reports, the Bank of Korea stopped considering Bitcoin as a strategic reserve due to its high volatility and potential liquidity risks, creating a minor bearish sentiment for Bitcoin. On Monday, Bitcoin briefly broke above 84,500 but failed to hold, especially considering the unresolved downside risks linked to US stocks. Investors should remain vigilant about short-term selling pressure, as further downside is likely.

Technical Analysis

BTCUSDT is consolidating in a triangle pattern in the 4-hour chart, with key resistance near 85,000. A breakout above this level could extend the current uptrend. However, the MACD histogram is shrinking, indicating weakening upward momentum, and a death cross signal has appeared at high levels, suggesting short-term bearishness. If the ascending trendline is breached, Bitcoin could re-enter a downtrend, potentially revisiting the March 2024 peak near 75,000.

Keeping a range trading strategy is essential. Try to buy low and sell high by selling Bitcoins at 83500. The target price should be set at 80000 and the stop-loss sits at 85000.

Trading Recommendations

Trading direction: Sell

Entry price: 83500

Target price: 80000

Stop loss: 85400

Support: 80000/78500

Resistance: 85000/90000

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