Bitcoin (BTC) Price Wavered as Investors Await Next Catalyst to Push Its Price Higher

Bitcoin (BTC) price remained in a tight range on Friday as some investors took profits, and the bullish pennant pattern continued forming.

Bitcoin price remained in a tight range on Friday as some investors booked profits, and the bullish pennant pattern continued forming. BTC also wavered as investors awaited the next catalyst that may push its price higher. That catalyst may have come from Moody’s, a major ratings agency.

* According to a recent statement, Moody’s downgraded the US debt from AAA to AA+ as it battered the soaring US debt and worsening fiscal outlook. S&P Global had downgraded the US in 2011, and Fitch Ratings followed suit in 2023.

* “We recognize the US’s significant economic and financial strengths; however, we believe these strengths no longer fully counterbalance the decline in fiscal metrics,” Moody’s stated.

* These rating agencies have argued that the US public debt is getting out of hand. Recent data show that the US has almost $37 trillion in debt, and the budget deficit continues to widen.

Why the Moody's downgrade of the US SHOULD BE a nothingburger—-In August 2011, S&P went first and downgraded the US from AAA to AA+. All hell broke loose.The reason hell broke loose was a lot of derivative contract, loan agreements, investment directives and the like… https://t.co/YLq29uKcyZ

— Wolf Richter (@wolf_richter) August 7, 2023

* Although Donald Trump has proposed some spending cuts through his DOGE project, the savings won’t move the needle. That’s because these cuts are concentrated in discretionary spending, which accounts for a small portion of US debt. Most of the spending occurs in areas like defense, social security, Medicare, and interest.

* At the same time, Trump is also promising the substantial tax cuts that will cost the US over $4 trillion in the next decade.

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* The worsening fiscal situation, together with the ongoing trade wars, means that large-scale dollar demand may start to ease. This, in turn, may lead to higher demand for safe-haven assets.

* Gold will be one of the top beneficiaries of all this as it is the best-known safe haven. Bitcoin is evolving into a haven, outperforming the stock market amidst recent tariff woes.

Bitcoin Price Technical Analysis

BTC price chart. Source: TradingView

The daily chart shows a strong Bitcoin price surge in the coming days. It has been forming a cup and handle pattern whose upper side is at its all-time high. It is also forming a small bullish pennant pattern, which is made up of a vertical line and a triangle.

Bitcoin remains above the 50-day and 100-day moving averages, and the Relative Strength Index and the MACD have continued rising. Therefore, the price will likely continue rising, with the next point to watch being at $108,300. A move above that level will point to more gains to $110,000.

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