BTC Drops Again
Bitcoin futures are back on the ropes this week with the leading crypto currency having reversed over 15% lower from initial highs on the week. Price has been grinding higher over recent weeks, trading within a corrective bull channel. However, sitting at the bottom of extended declines, the structure can be viewed as a bear flag and an opportunity for bears to add fresh downside exposure. Sellers can look for a break of the channel lows and 20575 level as an entry point, targeting a move back down towards the 16660 level.
Keep An Eye On
The current downturn can be firmly linked to the fresh strength we are seeing in USD. With traders once again focusing on the prospects of a further .75% hike in September, renewed buying in USD is wreaking havoc on risk assets across the board. A raft of key US data next week will be make or break for bitcoin. If we see any upside surprises, this will no doubt amplify the rally in USD, weighing further on Bitcoin in the near-term. Alternatively, any downside surprises will likely raise the odds of a smaller .5% hike, fuelling some unwind in USD and allowing Bitcoin to recover.