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BTC/USD Forex Signal: Bullish Pennant Pattern Forms

By Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

The BTC/USD price rose to the psychological level at $30,000 on Monday and then retreated to the current $28,465.

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Bullish view

  • Buy the BTC/USD pair and set a take-profit at 29,500.
  • Add a stop-loss at 27,500.
  • Timeline: 1-2 days.

Bearish view

  • Set a sell-stop at 28,200 and a take-profit at 27,500.
  • Add a stop-loss at 29,500.

The BTC/USD price moved sideways in the past few days as the recent momentum faded. Bitcoin was trading at $28,465, where it has been stuck at since Monday. The price remains below this week’s high of about $30,000. It has risen by more than 7% from its lowest level this month.

Bitcoin’s volume and futures open interest jumped on Monday after a fake news report suggested that the Securities and Exchange Commission (SEC) had approved Blackrock’s ETF proposal. The SEC is still considering proposals by companies like Fidelity, Franklin Templeton, and Invesco.

In an interview, Blackrock’s CEO, Larry Fink confirmed that his company was seeing more demand for the coin from its global customers. He also noted that most of this demand is happening as investors move to safe assets as geopolitical risks rise.

Bitcoin price forecast

The BTC/USD price rose to the psychological level at $30,000 on Monday and then retreated to the current $28,465. This price was important since it was the highest swing on October 2nd.

Bitcoin has moved above the crucial support level at $24,790, the lowest swing in September and June this year. It has formed a double-bottom pattern, which is a popular bullish sign.

The Relative Strength Index (RSI) has continued rising and is nearing the overbought level. Notably, Bitcoin’s volume has also risen modestly.

Therefore, the outlook for the BTC/USD pair is bullish as buyers attempt to retest the highest level this week. A break above this price will see bulls targeting the year-to-date high of 32,000. In this regard, the stop-loss of this trade will be at 26,475, the lowest swing last week.

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Crispus Nyaga
About Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.
 

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