BTC/USD Forex Signal: Rebound to All-Time High Likely

Crispus Nyaga

The pair will likely keep rising as bulls target the all-time high of more than 66,000.

Bullish View

  • Buy the BTC/USD and add a take-profit at 66,000.

  • Add a stop-loss at 62,000.

  • Timeline: 1-2 days.

Bearish View

  • Set a sell-stop at 63,000 and a take-profit at 60,000.

  • Add a stop-loss at 65,000.

The BTC/USD price made a bullish breakout on Tuesday as cryptocurrency prices rebounded. The pair rose to a high of 64,250, which was the highest level since October 21st. This brought Bitcoin’s market cap to more than $1.19 trillion.

Bitcoin Rebounds

The BTC/USD pair jumped as investors waited for the upcoming Federal Reserve decision that will come out later today. Analysts expect that the Fed will leave interest rates unchanged and then cut the size of its asset purchases. It will also hint that interest rate hike will happen sooner than expected.

The Fed decision is important for Bitcoin for two main reasons. First, Bitcoin is often seen as being a relatively risky asset. As such, its price tends to do relatively well in a period of low interest rates.

Indeed, analysts believe that the current rally is mostly because of the easy money policy. Besides, other riskier assets like technology stocks and meme coins have all rallied. Therefore, there is a likelihood that Bitcoin will show some volatility if the bank turns hawkish.

At the same time, the coin will likely maintain the bullish trend considering that the market has already priced in tightening. Other central banks like the Bank of Canada (BOC) and the Reserve Bank of New Zealand (RBNZ) have already started tightening.

Second, the decision is important since Bitcoin is mostly traded using the US dollar or stablecoins backed by the dollar. Therefore, in theory, a hawkish Fed could push the US dollar relatively higher, which will affect the price of Bitcoin.

Meanwhile, on-chain data show that activity is the network is rising. For example, the hash rate and Bitcoin mining difficulty have risen substantially in the past few weeks. At the same time, the number of large Bitcoin holders have continued to hold into their coins.

BTC/USD Forecast

The two-hour chart shows that the BTC/USD pair made a bullish breakout yesterday. It then found some resistance at about 64,000. Still, the pair is above the short and longer term moving averages. It also rose above the important resistance level at 62,990, which was the highest level on October 29th. The MACD has also continued to rise.

Therefore, the pair will likely keep rising as bulls target the all-time high of more than 66,000. This view will be invalidated if the price moves below 62,500.

BTC/USD

Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.