Selling BTCUSD before reaching the level of 60,000 amid activity on Mt. Gox and U.S. inflation data

On Tuesday, BTCUSD fell by 3.1% due to the activity of the administrators of the bankrupt Mt. Gox exchange. They started returning $9 billion dollars worth of Bitcoin reserves to creditors. Virtually all of the more than 42,829 Bitcoin worth over $2.9 billion held in Mt. Gox wallets was moved starting early Asian hours on Tuesday, according to data from CryptoQuant and Arkham Intelligence. After these transactions, 95,061 Bitcoin remained in the exchange wallets.

Mt. Gox’s trustee has said creditors should see base, intermediate and early lump-sum payments by Oct. 31 as the winding-up process progresses. One key question is whether those who receive the tokens will sell, pressuring Bitcoin. At the time of the bankruptcy, the platform held about 137,892 Bitcoin.

In addition, the major cryptocurrency’s price is declining amid the upcoming release of key U.S. inflation data. These indicators could affect the trajectory of the Federal Reserve’s monetary policy.

The U.S. Conference Board’s Consumer Confidence is due on Tuesday, along with the Fed’s Neel Kashkari, Mary Daly, and Lisa Cook speeches. With more hawkish comments from Fed officials, traders might shift the prospects of the first Fed rate cut back. This, in turn, is likely to boost the U.S. dollar and exert some pressure on Bitcoin.

The key event of the current week will be the publication of the Personal Consumption Expenditures (PCE) price index. This macroeconomic indicator is the preferred measure of inflation for the U.S. central bank. The data will be published on Friday.

From the technical point of view, the BTCUSD pair is forming a broad downward correction on the D1 timeframe. The price has pulled back from the trend resistance. Convergence of the RSI (standard values) on the H4 timeframe indicates a potential decline in the price of the main digital currency within the descending channel.

Signal:

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

The target is at the level of 60,000.

Part of the profit should be fixed near the level of 64,750.

The Stop-loss could be placed near the level of 73,330.

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.