BTCUSD briefly exceeded the level of $70,000 the day before, as cryptocurrency investment products continue to register capital inflows for the fourth week in a row. Today, however, Bitcoin is trading below $69,000.
According to CoinShares International Ltd, crypto asset inflows amounted to $185 million during the week through May 31. In total, market participants put $2 billion dollars into digital asset investment products, including Bitcoin exchange-traded funds, in May.
In addition, the latest increase in the major digital currency came amid disappointing macroeconomic data from the US released on Monday. These indicators reinforced expectations for monetary policy easing by the Federal Reserve (Fed) this year.
US manufacturing activity slowed for the second consecutive month in May. At the same time, construction spending unexpectedly fell in March and April because of weak activity in the non-residential sector.
According to the CME FedWatch tool, traders are currently pricing in a 59% chance of a Fed rate cut in September.
Investors are now taking a wait-and-see attitude before the publication of important economic data from the US this week, including the non-farm payrolls report. Against this backdrop, the dollar began to regain its losses.
At the technical level, the BTCUSD quotes are forming a broad downward correction on the D1 timeframe. The price pulled back from the trend resistance. The Relative Strength Index (RSI) divergence (standard values) on the H4 timeframe suggests a potential decline in the price of the main digital currency within the descending channel.
Signal:
The short-term outlook for the BTCUSD pair suggests selling.
The target is at the level of 60,000.
Part of the profit should be taken near the level of 64,750.
A stop-loss could be placed at the level of 73,330.
The bearish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
