Bitcoin’s recent price pattern suggests a potential downturn, as experts warns. We got a double top, a bearish formation, because after the price skyrocketed to $70k, nearing its all-time high from March, Bitcoin’s price has dropped to $63,000.
Everyone’s selling
This decline is likely caused the increased selling by miners, profit-taking by investors, and outflows from U.S.-listed spot ETFs.
The double-top, characterized by two peaks with a dip in between, signals a possible trend reversal if the price falls below the low point between the peaks. And now analysts say we have a double top.
Markus Thielen, founder of 10x Research, explains that Bitcoin’s current chart follows a textbook double top formation, with its support level under pressure.
He told that unless this pattern is canceled somehow, Bitcoin could drop to $50,000 or even $45,000.
Bad, bad news for traders, especially leveraged ones. While he thinks that the U.S. election and CPI can boost Bitcoin later this year, the signs of a potential correction in the short term are here. Better prepare for it.
Number’s game
The Federal Reserve’s preferred inflation measure, the personal consumption expenditures price index, is expected to show the smallest monthly increase in the core figure in over three years. Maybe this is why this metric is their preferred measure now.
This could support the case for Fed rate cuts from September. And a move like this is usually support the risk assets like Bitcoin, or tech stocks.
Greg Magadini, director of derivatives at Amberdata, notes that strong economic data has pushed bond yields higher and precious metals lower, which of course impacted digital assets too.
The high priest has spoken
Multiple Fed Governors will speak this week, along with key economic reports, including the PCE on Friday, which is closely watched by the Fed.
It seems now the bureaucrat’s word has bigger influence on the market than anythign else.
Economists surveyed by Bloomberg predict no change in the PCE price index and a minor 0.1% rise in the core PCE, resulting in annual increases of 2.6% for both the headline and core figures. This would be the smallest core increase since March 2021.
Which means the inflation is still here, life and things are getting more expensive, just a little slower. A very little.
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