The pair will likely rebound higher, with the next reference level being at 55,000.
Buy the BTC/USD pair and set a take-profit at 55,000.
Add a stop-loss at 45,000.
Timeline: 3-5 days.
Set a sell-stop at 48,000 and a take-profit at 45,000.
Add a take-profit at 51,000.
The BTC/USD price hovered slightly below the resistance at 50,000 as the strong recovery rally took a breather. The pair is trading at 49,173, which is about 70% above the lowest level in July this month. Other altcoins like Cardano, Ethereum and Binance Coin have also been in a strong bullish trend.
Bitcoin Price Rally Pauses
The BTC/USD pair rallied during the weekend after PayPal announced new cryptocurrencies offerings in the UK. The company will start allowing individual customers to use its platform to buy, sell, and hold cryptocurrencies like Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. A similar service is already being offered in the United States and is part of the company’s expansion of its services.
The pair also rose after Visa made some cryptocurrency moves. The company announced that it had acquired a Non-Fungible Token (NFT) for $150,000. This was a major move considering that Visa is one of the biggest FinTech companies in the world with a market capitalization of almost $500 billion. It is also a sign that the company is a believer in the crypto industry.
The relatively weaker US dollar also contributed to the rebound of the BTC/USD price. The US dollar declined across the board, with the DXY index falling by more than 0.25%. This decline happened as investors started embracing risk as the COVID situation made some modest improvement. It also happened after the Food and Drug Administration (FDA) gave the final approval to the vaccine by Pfizer and BioNTech.
Looking ahead, the next key catalyst for the BTC price will be the upcoming virtual Jackson Hole summit. This is an annual event that takes place in Wyoming. It tends to be a key mover of asset prices because central bankers tend to talk about the state of the economy and some of their actions.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair formed a strong bottom slightly below the 30,000 mark. The pair struggled to move below this level in May, June, and July. During the weekend, the pair moved to the important resistance of 50,000. It has also moved above the 25-day and 50-day moving averages, which is a bullish thing.
Also, oscillators like the Relative Strength Index (RSI) have been in an upward trend. Therefore, the pair will likely rebound higher, with the next reference level being at 55,000.