A daily sell signal in Bitcoin has now turned into a weekly signal and which warns of risk ahead.
BTCUSD – Weekly Chart
The price of BTC has hit resistance at the $120k level, and the red hammer candle last week has potential for a correction of at least 30% if it holds.
Bitcoin saw selling after the recent inflation data from the United States showed a higher print on tariffs. That popped the rate cut hype, and attention now turns to the Federal Reserve.
Fed Chair Jerome Powell has an upcoming speech at the Jackson Hole Economic Policy Symposium on Friday, which analysts are calling a “make-or-break” moment for the central bank.
Money markets are now pricing in an 84% chance of a 25-basis-point rate cut in September, with expectations for two cuts by the end of the year. There could be a big unwind in speculative assets.
Interestingly, BTC has registered a sell signal ahead of that event on Friday.
Despite the sell signal appearing, many analysts remain positive on the token. Brokerage firm Bernstein said on Tuesday that it sees BTC going to $200k. They were also positive on Solana and Ethereum.
“Our highest conviction view remains Bitcoin at $200k this cycle,” adding that Ethereum and Solana”are set to outperform, leading innovation and adoption in decentralized applications”.
“The path to $200k for Bitcoin is also the path to altcoin leadership by ETH and SOL,” they added.
The price of Bitcoin may run out of time this year if the weekly price level sees a correction.
