Bullish view
- Buy the BTC/USD pair and set a take-profit at 66,000.
- 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 66,000.
Bitcoin price continued recovering this week as market participants cheered the dovish Federal Reserve decision. The BTC/USD pair rose to over 64,000 for the first time since June 23rd this year.
Bitcoin recovery continues
The BTC/USD pair has rallied in the past few days after bottoming at 53,700 earlier this month. This rally happened after the German government sold the coins it seized from a pirate website.
The government has sold over 50,000 coins in the past few weeks, a move that led to a big increase in coins in exchanges.
This sale coincided with the liquidation of Bitcoins in wallets associated with Mt.Gox, a crypto exchange that collapsed in 2014. It also happened as more Bitcoin mining companies continued to liquidate their tokens.
Top Forex Brokers
Bitcoin has rallied because these sales did not have a major impact on the market as initially feared.
The coin also rebounded as the odds of Trump's victory rose after being shot during the weekend. Most analysts believe that he will win by a large margin if he competes against Joe Biden. Donald Trump is viewed favorably in the crypto market since he has supported the industry.
Also, the BTC/USD pair rose as investors cheered the recent inflation data and the impact on the Federal Reserve. Data released last week showed that the headline Consumer Price Index (CPI) dropped to 3.0% in June.
In a statement, the Federal Reserve Chair noted that the bank would likely start cutting interest rates as soon as September. Bitcoin and other risky assets thrive when the Federal Reserve has turned dovish.
BTC/USD technical analysis
The daily chart shows that Bitcoin price formed a small hammer pattern earlier this month. The lower side of this pattern was at 53,700, its lowest point this month.
Bitcoin has moved slightly above the 50-day and 25-day Exponential Moving Averages (EMA), a positive move. It is also nearing the first support level of the Andrew’s pitchfork tool and has flipped the 23.6% Fibonacci Retracement point.
The Relative Strength Index (RSI) has moved above the neutral point at 50 while the Average Directional Index (ADX) has moved above 36.
Therefore, Bitcoin will likely continue rising as bulls target the key resistance point at 66,000. The alternative scenario is where the BTC/USD pair retreats and retests the key support at 60,000.
Ready to trade our free trading signals? We’ve made a list of the best Forex crypto brokers worth trading with.