BTC/USD – A Bearish Breakout Can Be Expected For The Pair

Short Position

• Take Profit – 25,260
• Stop Loss – 28,000
• Timeline: 1-2 days

Long Position

• Buy Stop – 27,800
• Take profit – 28,800
• Stop loss – 26,000

Fundamentally speaking, the regulatory issues over the crypto industry are causing some turbulence in the crypto market. The price of the pair is also being impacted by the high rates of inflation and the likelihood that the Fed will continue to take a hawkish stance in the coming months. The state of the US stock market also had an effect on the price of Bitcoin, as major indices like the Dow Jones, Nasdaq 100, and S&P 500 all fell by 0.20% after the US released better consumer confidence statistics. For investors, the banking crisis appears to be fading away.

The Bitcoin pair formed a tiny bearish flag pattern on the price charts, indicating the likelihood of a bearish breakout for the pair. The pair had really been trading in a narrow range for a few days, but when the pair broke below the 25-period MA, we noticed some action. In addition, it went below the key resistance level of 28,885, where the RSI and MACD were spotted forming a bearish flag pattern. However, if you observe another movement crossing the key resistance level around 28,000, the bearish viewpoint can be incorrect.

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