The BTCUSD pair needs correction

14 November 2023 194
The BTCUSD pair needs correction

The BTCUSD pair has pulled back from the yearly high reached last week at around 38.000.

 

Cryptocurrencies like bitcoin and ether have rebounded in 2023, helping to generate big inflows to crypto funds through the course of the year.

 

According to CoinShares, asset managers have seen more than $1 billion in inflows so far this year, with $293 million in just the last week.

 

Year-to-date inflows are at $1.14 billion, marking the third-highest on record. Total assets under management jumped 9.6% last week, and 99% since the start of 2023.

 

Total assets under management reached $44.3 billion, the highest level since May 2022.

 

Last week, bitcoin fund inflows totalled $240 million, while ether investment products saw the largest inflows since August 2022, at $49 million.

 

Bitcoin has gained more than 120% this year, and ether is up about 76%. Optimism has swirled in recent months over the possibility that the US could soon see its first spot crypto ETF, with asset management giants including BlackRock and Fidelity applying for approval with the SEC.

 

Meanwhile, Commitments of Traders (COT) provided a Commodity Futures Trading Commission (CFTC) report for the week. According to the document, hedgers reduced their net positions in Bitcoin to 0.79 thousand. The net position began to decline from the maximum levels since July 4.

 

The BTCUSD pair is forming a new upward trend on the D1 timeframe.

 

In terms of wave analysis, the price is forming the first ascending wave. The Relative Strength Index (RSI) indicator (standard values) gives a signal of a change in the trend and a transition to the second downward wave, which is reflected in the divergence. A descending wave is necessary to increase bullish positions.

 

Signal:

The short-term outlook for the BTCUSD pair is to sell.

The target is at the level of 32.000.

Part of the profit should be fixed near the level of 35.000.

A Stop-loss should be placed near the level of 39.500.

 

The bearish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.

This content is for informational purposes only and is not intended to be investing advice.

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