Bearish View
- Sell the BTC/USD pair and set a take-profit at 28,500.
- Add a stop-loss at 31,500.
- Timeline: 2 days.
Bullish View
- Buy the BTC/USD pair and set a take-profit at 32,000.
- Add a stop-loss at 28,500.
The BTC/USD pair continued consolidating as the market reflected on the new cryptocurrency bill in the US and the upcoming consumer inflation data. The pair is trading at 30,100, which is slightly below this week’s high of 31,792.
Consolidation Continues
Bitcoin continued its consolidation phase as investors reacted to the latest cryptocurrency bill in Washington.
The bipartisan bill was drafted by Cynthia Lummis, a Republican from Wyoming, and by Kirsten Gillibrand of New York.
If passed, the bill will grant regulation of cryptocurrencies like Bitcoin and Ether to the Commodity Futures Trading Commission. It will also make a clear distinction between digital assets that are commodities or securities. As such, Bitcoin will fall into a commodity while the SEC will focus on digital assets that are not securities.
Most people in the industry believe that the bill is a good one since it simplifies the regulatory situation of the industry. Most importantly, it will remove the conflict that exists between the SEC and the CFTC in determining who will regulate what.
The draft was unveiled as the SEC continues to fight Ripple and its executives in court. And this week, it was revealed that the agency was investigating Binance, the biggest exchange in the world.
The next key catalyst for the BTC/USD pair will be the upcoming Consensus event in Texas. The event, which is hosted by Coindesk, is the most important one in the industry. It will feature most of the most important people in the sector, including regulators and developers.
The pair will also react to the upcoming American consumer inflation data from the United States. Analysts expect the data to show that the country’s inflation remained at a 40-year high.
Meanwhile, on-chain data shows that inflows in Bitcoin have been relatively limited in the past few weeks.
BTC/USD Forecast
The BTC/USD pair continued moving sideways. It is trading at 30,250, which is lower than this week’s high of 31,435. It is also along the 25-period and 50-period moving averages while the Average True Range (ATR) tilted upwards. Further, the Relative Strength Index (RSI) and the MACD have moved to the neutral level.
Therefore, the pair will likely remain in this range today. The key support and resistance levels to watch will be at 29,200 and 31,500.
