- Bitcoin price has retreated in the past two days.
- Billionaire Ray Dalio has warned about the turbulence of the US economy.
- Money market inflows have surged to over $7.75 trillion.
Bitcoin price retreated and moved below the important support level at $80,000 today, down from this week’s high of $82,300. This retreat may continue even after a rising wedge pattern forms, as Ray Dalio warns of economic turbulence in the United States.
Bitcoin Price on Edge as Money Market Inflows Jump and as Ray Dalio Warns on the US
BTC price pulled back slightly as the recent rally faded amid the ongoing US-Iran war, which has pushed investors away from risky assets. For example, data shows that the US stock market retreated, with the S&P 500 and the Dow Jones falling by 0.50%.
Meanwhile, billionaire Ray Dalio, the founder of the world’s largest hedge fund, warned that the US was moving into a new era of turbulence amid surging deficits and debt. The total public debt has soared to a record $39.9 trillion. Its budget deficit has also jumped, which explains why the US bond yields have soared.
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The rising uncertainty also explains why money market funds have continued adding assets. These funds added over $122 billion this month, bringing the total assets to $7.75 billion from $7.62 billion in the previous week. Inflows have risen as investors take advantage of the relatively high interest rates.
On the positive side, there are signs that Bitcoin is also benefiting from its role as a safe-haven asset. Spot Bitcoin ETFs have added over $1.6 billion this month after adding $1.3 billion a month earlier. In total, they have added nearly $6 billion in assets in the past three months.
Bitcoin Price Prediction: Technical Analysis
The daily timeframe chart reveals that the ongoing Bitcoin price rally may be on the verge of a major reversal. It has formed a giant rising wedge pattern, composed of two converging trendlines. The two lines are nearing their crossover, suggesting the crash may be imminent.
At the same time, the Relative Strength Index (RSI) has turned around, moving from a high of 68.87 earlier this week to the current 61. The price is also losing momentum.
Therefore, the coin will likely continue falling, potentially to the key support level at $70,000. On the other hand, a move above the $82,300 resistance level will invalidate the bearish outlook.
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