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Bitcoin Maybe Ripe for a Bullish Break

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The BTC/USD price will next react to the latest economic data from the United States. 

Bullish view

  • Buy the BTC/USD pair and set a take-profit at 17,500.
  • Add a stop-loss at 15,500.
  • Timeline: 1-2 days.

Bearish view

  • Sell the BTC/USD pair and set a take-profit at 15,000.
  • Add a stop-loss at 17,300.

The BTC/USD price moved sideways as the fallout on FTX and Alameda Research continued. Bitcoin remained slightly above $16,000, which was slightly above this month’s low of 15,510. Like other cryptocurrencies, Bitcoin has fallen by double-digits from the highest point this month.

Fear and greed index retreats

Bitcoin price has been moving sideways following the collapse of FTX. On Monday, the fallout of this collapse continued as BlockFi filed for bankruptcy. The firm, which was backed by Peter Thiel, was in the process of being saved by FTX before its collapse.

Voyager Digital, another exchange that FTX acquired from bankruptcy, has also filed. In a statement, Binance US said that it will attempt to buy the company. Meanwhile, Digital Currency Group, one of the biggest conglomerates in the crypto industry, has hired restructuring advisors after coming under significant strain.

Bitcoin dropped slightly in line with other assets like stocks and commodities. The Dow Jones shed over 300 points while the Nasdaq 100 index dropped by over 400 points. Crude oil plunged by more than 3%. These assets dropped because of the unrest in China because of the ongoing Covid restrictions. Historically, cryptocurrencies tend to have a close correlation with stocks.

Meanwhile, Bitcoin’s fear and greed index, which is a closely-watched gauge, has dropped to the fear level of 20.  Most of the gauges like dominance, market momentum, and volatility have been in a downward trend. Bitcoin tends to drop when investors are fearful.

The BTC/USD price will next react to the latest economic data from the United States. Conference Board will publish the latest consumer confidence data. Economists expect that consumer confidence dropped from 102 to 100 even as inflation eased. A stronger-than-expected reading will provide a sign that the Fed has more room to hike rates.

BTC/USD forecast

The four-hour chart shows that the BTC/USD pair has been in a tight range in the past few days. It remains below the descending trendline shown in yellow. The pair has also pulled back below the 25-day moving average. It has also moved to the standard pivot point. It has also formed a small head and shoulders pattern.

The pair will likely have a brief comeback as buyers target the second resistance at 17,500. A drop below the support at 15,800 will invalidate the bullish view.

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