On Tuesday, the exchange rate of BTCUSD fell 1.08%, pulling back from the seven-week highs reached the previous day. On the evening of July 29, 2024, bitcoin briefly managed to overcome the level of $70,000. This rise was due to expectations of presidential candidate Donald Trump’s upcoming speech at the Bitcoin 2024 cryptocurrency conference, anticipation of the stock market growth, and a possible key interest rate cut by the Federal Reserve.
An additional contributing factor was increased investor interest in high-risk assets such as cryptocurrencies.
However, bitcoin lost ground after the release of news about the US authorities transferring $2 billion worth of bitcoins. These coins were seized from the Silk Road darknet marketplace. If the US authorities decide to sell this cryptocurrency, the market could come under pressure, as was the case with the BTC sell-off in Germany.
Previously, Donald Trump promised not to sell bitcoins on the US balance sheet if he wins the election. The information about a possible BTC sale appeared two days after the candidate’s statement. According to assumptions of some market participants, the current administration may take advantage of this occasion and sell bitcoins, leaving Trump without the ability to protect them.
There are over 200 thousand BTC under the control of the US authorities, which is almost 1% of the total cryptocurrency issuance. The sale of such a volume of the main digital currency could put significant pressure on the market.
Technical characteristics of BTCUSD quotes show the formation of a broad downward correction on the daily (D1) timeframe. The price, having rolled back from the trend resistance, shows the strength of the current range and its direction toward support.
The volumes of the Moving Average of Oscillator indicator (with parameters 12, 26, 9) are decreasing and may move into the negative zone. This may strengthen the “bearish” sentiment.
Short-term prospects for the BTCUSD price suggest selling, with the target at the level of 57,000.00. Part of the profit should be taken near the level of 63,400.00. A stop-loss could be placed at the level of 73,200.00.
Since the bearish trend is short-term, the trading volume should not exceed 2% of your total balance to reduce risks.
