Bearish View
- Sell the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 99,000.
- Timeline: 1-2 days.
Bullish View
- Buy the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 90,000.
The BTC/USD pair retreated to 95,000 in the overnight session, ending the recent strong rally. Bitcoin price was trading at $95,000, down from the year-to-date high of $99,800. It has remained substantially higher than the year-to-date high of below $40,000.
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The coin retreated even as US equities bounced back, with the Dow Jones and S&P 500 index rising by over 0.70%. This rally, which coincided with a dip in bond yields, happened as the market cheered the appointment of Scott Bessent as the next Treasury Head.
Bitcoin also dropped as MicroStrategy continued to accumulate more coins. The company purchased 5,500 coins worth $5.4 billion. This purchase brought the total value of all its Bitcoin holdings to over $36.7 billion, making it the biggest holder of coins in the industry. Other top holders are companies like Marathon Digital, Riot Platforms, and Tesla.
Looking ahead, the next key catalyst for the price of Bitcoin will be macro-related. The Federal Reserve will publish minutes of the last meeting later on Tuesday, while the Conference Board will release the latest consumer confidence data.
Bitcoin is also reacting to the recent election of Donald Trump as the President of the United States. He has promised to be the most crypto-friendly president, and there are signs that he is achieving that goal based on his appointments.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has retreated sharply in the past few days. It has retreated from almost 100,000 to 95,000.
The pair has moved to the weak, stop & reverse pattern of the Murrey Math Lines tool. Also, it remains above the 50-day and 100-day Exponential Moving Averages (EMA), signaling that bulls are in control.
However, the two lines of the Percentage Price Oscillator (PPO) have formed a bearish crossover. Therefore, there is a likelihood that the pair will drop to the strong pivot reverse point at 87,500 and then resume the strong bullish trend. Odds are high that the coin will jump to over 100,000 in the near term.
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