BTC/USD Signal 11/08: Bitcoin Wavers as ETF Inflows Coincide

Bitcoin wavered as geopolitical risks rose during the weekend. Iran issued a list of demands for it to reopen the Strait of Hormuz. It said that the Strait will only open once the US pays reparations, ends the blockade, and releases its seized assets. As a result, crude oil prices jumped, with Brent, the global benchmark, rising to $87.7.

The rising oil prices mean that inflation may continue rising this month, which may reduce the odds of the Federal Reserve cutting interest rates, even after last week’s nonfarm payrolls (NFP) data. This report showed that the economy lost over 23k jobs last week. In a statement on Monday, Beth Hammack, the head of the Cleveland Fed, said that the bank may need several rate hikes to bring inflation back to 2%.

Bitcoin also wavered after Strategy sold 1,690 coins last week to fund its cash assets. It raised $650 million and used some of the cash to buy STRC shares.

BTC/USD Technical Analysis

The daily chart shows that the BTC/USD pair has moved sideways for over a month. It dropped to 64,000, a few points below the highest point in June last month. It has moved slightly below the 50-day moving average.

At the same time, the Relative Strength Index (RSI) has dropped below the neutral level of 50. Also, the Average True Range (ATR) has been in a downward trend and is at the lowest level in months, a sign that its volatility has faded.

Therefore, the price will remain in this range in the next few days. The key support and resistance levels to watch will be 60,000 and 66,875.