- Summary:
- The BTC to GBP rate is expected to experience a further slump after the downtrend resumed with a 5% drop in price on Thursday.
The BTC to GBP price prediction has tilted to the bearish end of the equation, following the rejection of price action at the 17779 resistance level. This plays into the hands of sellers who were expecting a retracement rally to initiate new short positions.
The decline in Bitcoin prices continues as the market’s bearish sentiment failed to go away despite some weakness in the British Pound following dovish comments made by the BoE Governor at a central bank event on Wednesday. However, he has indicated that soaring inflation could hit the UK economy harder than other countries, meaning that rate hikes in the UK are very much on the cards.
Rising interest rates draw investment flows out of risky assets such as cryptocurrencies and into money market instruments. The possibility of additional interest rate hikes is keeping a cap on any rally by the BTC to GBP pair, which is why the pair has seen recent selling pressure. The BTC to GBP pair trades nearly 5% lower on the day.
BTC to GBP Outlook
The intraday decline, which continues the rejection at 17779, looks set to challenge the support at 14819 (30 November 2020 high and 18 June 2022 low). A breakdown of this price mark sends the pair to the 12283 support level, last attained on 26 November 2020. Below this level, another pivot is found at 9605 (22 October 2020 low), with potential intervening support coming in at 10980 (1 November 2020 low).
On the flip side, the bulls would need to force a break of the 17779 resistance to make 21161 a viable target. Overcoming this resistance clears the pathway toward the 25811 price mark (30 June 2021 and 31 May 2022 highs). Additional targets to the north are found at the 29898 price level (8 January low and 26 February high) and at 32012 (20 January and 5 May highs).
BTC to GBP: Daily Chart
