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BTC to GBP Rate Plummets As Crypto Market Selloff Resumes

This Friday, the BTC to GBP rate plummeted by more than 5% after a selloff resumed on the BTC/GBP pair. Bitcoin bears had a field day early in the London session, as they liquidated overleveraged long positions by more than $400 million this Friday alone. The BTC to GBP rate has somewhat stabilized, just above the support at 18,000 GBP. Other tokens such as Ethereum, Solana, Cardano, Polygon, and Shiba Inu have taken larger hits, some as much as 15% of their values.

The trigger for the selloff appears to be the latest comments by several Fed members supporting more interest rate hikes. Rate hikes make USD-denominated assets more attractive at the expense of risky assets such as Bitcoin. The British Pound also saw some positive numbers in the economic calendar, with retail sales growing 0.3% monthly while the market expected a drop by 0.2%. UK public sector borrowing also fell from 20.1 billion pounds to 4.2 billion pounds. 

As a result, the BTC to GBP could enter into a selloff period in the next few days before next week’s loaded economic calendar.

BTC to GBP Forecast

After violating the wedge’s lower border, the intraday decline has made contact with the 18020 support level. A breakdown of this pivot is required to confirm the breakdown move. If this happens, the 16000 price mark, a psychological pivot and 13 July low become the immediate downside target. Below this level, further price deterioration gives the bears access to the 15436 support (30 June low). If there is a price drop below this point, harvest points at 14705 (19 June low) and 13245 become visible.

This outlook is invalidated if a bounce on 18020 eventually takes out the 20379 resistance (11 August high). 21875 (13 June high) and 24477 (24 January low) would become additional price targets to the north. However, the sentiment on Bitcoin remains bearish, and it is possible that any rallies on Bitcoin may present new selling opportunities for the bears.

BTC/GBP: Daily Chart