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 65,000.
Bitcoin price consolidation has continued its consolidation phase this week as concerns about regulations continued. The BTC/USD has remained between the support at 56,495 and its all-time high of 73,733.
The price of Bitcoin continued to consolidate this week after the Securities and Exchange Commission (SEC) sent a Wells Notice to Robinhood. It accused the company of offering unregistered securities on its platform. Before Robinhood, the SEC sued companies like Coinbase, Kraken, and Binance.
Still, some analysts are bullish on Bitcoin. In an interview on Monday, Tom Lee, the founder of Fundstrat, a leading research firm, noted that the coin has more upside in the coming months. He believes that it will surge to over $100k by the end of the year.
Tom Lee is also bullish on stocks since he expects that the Fed will start cutting interest rates as inflation retreats. Unlike other analysts, he believes that the key inflation drivers like housing and insurance have started to peak.
Meanwhile, Standard Chartered analysts believes that Bitcoin has more upside this year. The bank noted that the coin will see more demand amid the de-dollarization trend. Also, it could do well ahead of the general election.
If Trump wins, the analyst notes that he will replace Gary Gensler with a regulator favoring a light-touch regulatory approach. Genslder has been accused of derailing the crypto industry by focusing on enforcement.
BTC/USD technical analysis
Bitcoin has been in a tight range for a while as investors wait for the next important catalyst. A likely driver for the coin will be the next actions by the Fed. With the US economy softening, there is a likelihood that the bank will start cutting interest rates in the coming months.
On the daily chart, we see that the BTC/USD pair dropped to a low of 56,493 last week and has now rebounded to over 63,000. Last week’s lowest point was along the lower side of the descending channel. It has now retested the upper side of this channel.
The pair has formed what looks like a bullish flag pattern, a popular positive sign. Therefore, Bitcoin will likely have a bullish breakout as buyers target the key resistance at 66,000. This view will be confirmed if the price moves above this week’s high of 65,000. The alternative scenario is where it drops to the lower side of the channel at 60,000.
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