Solid News

BTCUSD Short-term Price Correction Possible

8/15/2022 2:03 PM

Last week, the BTC/USD pair was growing and today once again tested the 25000.00 mark (Murrey [8/8], 23.6% Fibonacci extension).

The main driver of positive dynamics was the July data on US inflation: a slowdown in its growth to 8.5% made many investors hope that the peak of consumer price growth in the country has passed, and the indicator will now begin to move towards the target level of 2.0%, which may force the US Federal Reserve to abandon a sharp rate hike of 75.0 or 100.0 percentage points at the next meetings. It, in turn, became a catalyst for the active decline of the dollar against its main competitors. Also, the transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, scheduled for mid-September, arouses the interest of traders in the entire cryptocurrency market and “digital gold” in particular.

However, the medium-term prospects for the BTC movement are still unclear and cause opposing opinions among specialists. For example, analysts at JPMorgan Chase & Co. believe that the negative effect of the collapse of Terra has been overcome. The cryptocurrency market has reached a minimum and can now resume serious growth. The opposite opinion is shared by the head of Galaxy Digital, Michael Novogratz: he believes that the tightening of monetary policy in the United States, albeit slower than before, will continue to put pressure on digital assets, and the BTC rate is unlikely to exceed 30000.00 by the end of this year, remaining in the corridor 20000.00–30000.00.

The price has rolled back down and not consolidated above 25000.00. Judging by the reversal of Stochastic near the overbought zone, the decline may continue to the middle line of Bollinger bands around 23650.00, and in case the quotes consolidate below it and 23437.50 (Murrey [7/8]), return to 21875.00 (Murrey [6/8]). Otherwise, growth will resume towards 25000.00, 26562.50 (Murrey [+1/8]), and 28125.00 (Murrey [+2/8], 61.8% Fibonacci extension).

Resistance levels: 25000.00, 26562.50, 28125.00. | Support levels: 23437.50, 21875.00, 20312.00.

Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742

Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023