Bitcoin witnessed fresh selling and minor profit booking as bulls failed to keep up the upbeat mood and cross the resistance level. In my previous analysis Stalled!, I had stated that if the bulls struggle for too long below the resistance, then it may eventually lead to a decline. I still maintain my view.
Another pressure point is the outcome of the FOMC meeting which had Janet Yellen ‘mostly optimistic’ on the US economy and raised the expectations that the first interest rate hike may come in as early as September. An increase in interest rates will push demand for the greenback higher, and demand for dollar-denominated assets such as Bitcoin may lose its sheen.
Bitcoin is currently trading at $289.73, down 1.5 percent since yesterday.