July 2, 2022
  • July 2, 2022

Sale could accelerate to $ 40,000

By on May 17, 2021 0

In its marketing, Tether has consistently stated that its reserves are 100% backed by cash, which raises concerns about the strength of stablecoin.

Bearish view

  • Sell ​​BTC / USD and set a take-profit at 40287 (S1 from the standard pivot point).
  • Add a stop-loss at 47104 (April 25 low).
  • Chronology: 1 to 2 days

Bullish view

  • Set a buy-stop at 47.104 and a take-profit at 50,000.
  • Add a stop-loss at 45,000.

The BTC / USD price fell sharply over the weekend as investors continued to worry about high interest rates and Tether.. The price of Bitcoin is trading at $ 44,487, which is 31% below its all-time high of $ 65,000.

Publicity

Tether concerns

Bitcoin prices fell after Tether announced its makeup. As of March 31, Tether’s assets were backed by cash and cash equivalents and other short-term deposits and commercial paper at 75.85%. A closer look at the report shows that only 2.9% of these reserves are cash reserves.

In its marketing, Tether has consistently stated that its reserves are 100% cash backed, raising concerns about the strength of stablecoin.. This was a major issue as Tether is the largest stablecoin in the world. Additionally, in the past, developers have been criticized for manipulating Bitcoin prices.

BTC / USD is also falling as investors continue to worry about interest rates as inflation rises. Last week, data from the United States showed consumer and producer inflation rose sharply in April. This performance is mainly due to the rise in commodity prices and the recent US stimulus plan.

Other figures showed that the labor market was starting to tighten. For example, the number of initial jobless claims plummeted last week, as more companies like McDonald’s began to raise wages in an attempt to attract workers. Therefore, a combination of higher inflation and a tightening labor market means the Federal Reserve may be forced to intervene by tightening.

As such, the problem is that the prices of Bitcoin and other cryptocurrencies could start to decline as the monetary situation tightens. In addition, the recent rally has been attributed to Federal Reserve shares. In response to the pandemic, the bank cut interest rates to zero and launched a major quantitative easing operation that brought its balance sheet to more than $ 7.8 trillion.

BTC / USD Analysis

The four hour chart shows that the BTC / USD price has been in a strong downtrend. The pair is trading at the lowest level since March. In the overnight session, it broke below significant support at $ 47,100, which was the lowest level this month. The downtrend is supported by the 25 and 50 day exponential moving averages (EMA). Therefore, the bears appear to be in control, which could see them retest the next support at $ 40,287, which is the first support for standard pivot points.

BTC / USD signal