NPXS/USD Daily Chart
Patrick Heusser, head of trading at Swiss-based Crypto Finance AG, from his observation of BTC price charts noticed that a rising wedge which depicts uptrend fatigue has started taking shape.
He stated “My concern is growing that we might run into a rising wedge scenario,” while calling for a tinge of caution in Bitcoin trading.
According to Heusser, a breakdown beneath $54,000 would confirm the rising wedge scenario and open the doors for a drop to $47,000. The immediate bias will remain bullish while the wedge support is held intact.
Also, rising U.S. Treasury bond yields could create extra selling pressure for Bitcoin along with stocks. Joel Kruger, cryptocurrency strategist at LMAX Digital spoke along this line ‘If rates go higher, it will force investors to rethink their long equity exposure and could open a big sell-off in stocks and as things stand in the short term because Bitcoin is still a maturing asset, it still shares correlations with risk sentiment. So Bitcoin would be somewhat exposed if something like this played out’.
Analysts at Cryptowatch of Kraken exchange indicated that the market is reaching an overbought condition signaling that BTC may be running out of steam.
Conversely, the Fed’s reaffirmation to uphold its stance on monetary policy should benefit Bitcoin’s price in the short term.
Bitcoin Stock-2-Flow Model: PlanB/Twitter
Image Credit: PlanB/Twitter, Shutterstock
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