Bitcoin sellers are targeting a test of the 200-day average and 58000 level

Bitcoin quotes started the new week with the strongest collapse in 2.5 months. On Monday, the price of the main cryptocurrency fell by more than 8%, dropping to early May levels. Below the 60000 mark, the bulls became active, trying to at least partially buy back yesterday’s drawdown. However, their efforts are unlikely to be enough to reverse the current downtrend. Bitcoin sellers still have one more target in the form of testing the 58000 level.


According to Coinglass data, over the past 12 hours, long positions worth more than $210 million were closed in the cryptocurrency market. Bloomberg experts believe the reason for this is the situation with the Japanese cryptocurrency exchange Mt. Gox. It was hacked more than 10 years ago, and has now announced the return of blocked assets, including Bitcoins, to investors in July. In this regard, crypto sales trader at OSL Stefan von Henisch expects an increase in supply in the cryptocurrency market, which leads to a decrease in quotations.


According to Bloomberg estimates, the outflow from Bitcoin ETFs has exceeded $600 million in the last 2 weeks. This is the first such case since the January approval of exchange-traded funds on cryptocurrency in the United States. The lower trade turnover is also a negative sign indicating a loss of trader interest in Bitcoin.


Tony Sycamore, market analyst at IG Australia, sees the problem in the competition between cryptocurrency and traditional assets. Bitcoin set an all-time high in March, and since then has shown only sporadic growth. Because of this, investors are now more interested in stocks and gold. According to Sycamore, Bitcoin may attract attention again when the price falls to the area of the 200-day moving average. Now it corresponds to the range of 57500–58000.


If the bulls fail to buy back yesterday’s drawdown in the next few days, Bitcoin’s price is likely to continue falling. The 58000 mark seems to be an interesting option for fixing short positions.


The following trading strategy can be suggested:


Sell BTCUSD in the range of 60500–61500. Take profit — 58000. Stop loss — 63500.

Traders can also use a Trailing stop instead of a fixed Stop loss at their discretion.

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