Bullish view
- Buy the BTC/USD pair and set a take-profit at 70,000.
- Add a stop-loss at 60,000.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 64,000 and a take-profit at 60,000.
- Add a stop-loss at 67,000.
Bitcoin price continued its strong comeback on Wednesday as the recent rally accelerated. The BTC/USD pair surged above 65,000 for the first time since June 21st of this year. It has rebounded by over 21% from its lowest point this month, moving into a technical bull market.
Bitcoin rally gains steam
Bitcoin continued its strong rally this week as investors embraced a risk-on sentiment after the dovish statement by Jerome Powell, the Fed Chair. The sentiment also happened after more American companies like Morgan Stanley and Bank of America published strong financial results.
In his statement this week, Jerome Powell reiterated that the Fed was considering cutting interest rates in a bid to stimulate the struggling labor market. In a recent report, the Bureau of Labor Statistics (BLS) showed that the unemployment rate rose to 4.1% in June, its highest point since 2021.
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Therefore, analysts expect that the bank will deliver the first interest rate cut in September since inflation has also retreated. Bitcoin and other risk assets thrive when the Federal Reserve has turned dovish.
Bitcoin also rallied even after accounts linked to Mt.Gox started moving coins. The account moved coins worth over $2.8 billion as the compensation started. Investors now believe that these distributions will have a minimal impact on Bitcoin prices.
BTC/USD technical analysis
Bitcoin price crashed to a low of 53,700 earlier this month and formed a small hammer pattern. It has moved above the 23.6% Fibonacci Retracement point. The BTC/USD pair has moved above the first support of the Andrew’s pitchfork tool.
Also the pair has crossed the 50-day and 100-day Exponential Moving Averages (EMA) while the momentum oscillator has pointed upwards. Other oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards.
Most importantly, the pair has formed a descending widening wedge chart pattern. Therefore, the BTC/USD pair will likely continue rising as buyers target the next point to watch will be the psychological point at 70,000.
The stop-loss of this trade will be at 60,000. A drop below that point will signal that there are more sellers in the market.
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