Bullish view
- Buy the BTC/USD pair and set a take-profit at 65,000.
- Add a stop-loss at 60,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 60,000.
- Add a stop-loss at 65,000.
Bitcoin price held steady in the overnight session, helped by the ongoing risk-on sentiment among day traders. The BTC/USD pair soared to a high of 63,000, up from last week’s low of 60,000 as traders waited for the upcoming US inflation data.
Risk-on sentiment resumes
There are signs that investors are embracing a risk on sentiment ahead of US inflation data set for Wednesday.
US stocks continued rising on Monday while the US dollar index (DXY) remained under pressure. The Dow Jones, Nasdaq 100, and S&P 500 indices are hovering near their highest levels on record.
There are signs that day traders have returned to the market in a big way. For example, meme stocks like AMC Entertainment and GameStop surged by more than 70% after Roaring Kitty returned to the market.
This surge is a sign that investors are embracing risky assets as hopes of central bank rate cuts rise. Sweden’s Riksbank has already slashed rates while the Bank of England and European Central Bank are expected to start slashing rates in June.
Economists expect that the Fed will start cutting rates later this year because of the softening economy. Consumer confidence has crashed to its lowest level in years while retail sales, GDP, and manufacturing figures have dropped.
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Meanwhile, Bitcoin rose as investors continued buying spot Bitcoin ETFs. Data shows that these ETFs added over $117 million in inflows last week. That was a notable figure since these funds have had outflows for four straight weeks.
Looking ahead, Bitcoin and other assets like the US dollar and stocks will react to a statement by Jerome Powell. He will shed more light on what to expect in the coming meeting in June. His statement will come a day ahead of the upcoming US inflation data.
BTC/USD technical analysis
Bitcoin has rebounded in the past few days as it moved above the psychological point at 63,000. The 25-period and 50-period moving averages have formed a golden cross pattern. Similarly, the Relative Strength Index (RSI) and the MACD indicators have pointed upwards.
The pair has also formed an inverse head and shoulders pattern and is nearing its slanted neckline. Therefore, the pair will likely have a bullish breakout in the coming days as buyers target the key resistance point at 65,000.
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