As reported by CoinDesk, BTC is once again facing selling pressure ahead of the release of the U.S. ISM manufacturing data. The ISM data is scheduled to be released on Tuesday, and a reading below 48 could lead to further price declines.
BTC fell nearly 3% to $63,600 in early European trading on Monday, breaking the support line from the Sept. 6 low of $52,600 to last week’s high of $66,500. S&P 500 futures and the U.S. dollar index were largely flat.
Markus Thielen of 10x Research said that BTC is overbought in the short term, and the Greed & Fear Index showed a pullback signal turning bearish, and a pullback is expected in the next few days.
Thielen added that the ISM manufacturing data released in the first week of each month since June has typically been accompanied by a 10% drop in prices. The September report is expected to show that manufacturing activity continued to contract.
Thielen noted in a note to clients that the ISM manufacturing new orders data was close to recession levels and a reading below 48.0 could trigger a BTC decline, while a reading above that could drive a rebound.
Markets are optimistic about the fourth quarter, driven by expectations of another 50 basis point rate cut from the Federal Reserve and China’s recent massive stimulus.
