Bearish View
- Set a sell-stop at 36,000 and a take-profit at 34,000.
- Add a stop-loss at 38,000.
- Timeline: 1 day.
Bullish View
- Set a buy stop at 40,000 and a take-profit at 45,000.
- Add a stop-loss at 35,000.
The BTC/USD rebounded on Monday after crashing to a multi-month low of $30,000 last week. Bitcoin is trading at $38,000, which is almost 30% above its lowest level last week. According to CoinMarketCap, the currency has a total market cap of more than $725 billion, which is lower than the all-time high of above $1 trillion. The total market cap of all cryptocurrencies has risen by more than 17% in the past few sessions.
Cryptocurrencies Rebound
Bitcoin led the rest of cryptocurrencies lower last week as concerns about high-interest rates, China regulations, and valuations rose. Recently, data from the United States showed that the headline Consumer Price Index rose by 4.2%, which is significantly above the Fed’s target of 2%.
Therefore, there have been concerns that the BTC prices will retreat if the Fed starts a new phase of gradual tightening. However, these concerns have eased a bit after several officials warned that the situation was temporary and that the bank would not tighten any time soon. This was positive news for Bitcoin and other risky assets. Indeed, the Nasdaq 100 Index rose by more than 1% on Monday, outperforming the Dow Jones and the S&P 500 indices.
The BTC/USD is also rising as investors rush to buy the dips. Furthermore, a Bitcoin that used to cost $60,000 a few weeks ago is now selling for less than $40,000. Similarly, an Ether that used to cost $4,000 two weeks ago is now going for less than $2,500.
Further, the prices have risen since some well-known large holders have not sold or exited their trades. For example, MicroStrategy has continued to hold Bitcoin worth more than $4 billion. Similarly, Tesla has not yet sold its holdings. This is a sign that there is still more institutional support for the BTC.
BTC/USD Prediction
On the daily chart, we see that the BTC/USD pair declined to a low of $29,980 last week. This price was slightly below the 50% Fibonacci retracement level. It has now bounced and is slightly below the 38.2% retracement level. Still, it is below the 25-day and 50-day exponential moving averages, meaning that bears are still in control. At the same time, the Relative Strength Index (RSI) is in a bearish trend. Therefore, the pair will likely retreat as the current relief rally fades.
