BTC/USD Plunges Amid Inflation Fears and Middle East Tensions
The BTC/USD pair has been under pressure this week due to concerns about inflation and escalating geopolitical tensions in the Middle East. The pair fell to $78,490, just below its monthly high of $82,670.
The rising oil prices have raised fears that inflation will continue to rise, which could lead the Federal Reserve to hike interest rates or maintain them at an elevated level. Christopher Waller, a top Fed official, has hinted that he may support hiking rates if this week's inflation report is higher than expected.
On the technical side, the BTC/USD pair has formed an ascending channel and is currently hovering near its lower side. The Relative Strength Index (RSI) has moved from overbought to 60 and is pointing downwards, while the MACD indicator has formed a bearish crossover. However, the pair has also formed a bullish flag pattern, which suggests it may bounce back if it moves above the upper side of the flag at $82,670.