The pair will likely continue the recovery process as investors target the upper side of the channel at 25,000.
- Buy the BTC/USD price and set a take-profit at 24,500.
- Add a stop-loss at 22,500.
- Timeline: 1-2 day.
- Set a sell-stop at 22,800 and a take-profit at 20,000.
- Add a stop-loss at 24,000.
The BTC/USD price tilted upwards as investors react to the strong rebound of American stocks and the regulatory clarity in the United States. It rose to a high of 23,600, which was the highest level since July 31st this year.
Regulation is one of the top issues in the blockchain industry. As a result, many companies and institutional investors have avoided investing in bitcoin and other cryptocurrencies. One of the concerns is that it is unclear which regulator has the authority to regulate them.
This could soon change if a proposal by Senate leaders pass. Leaders of the influential Agriculture Committee introduced a bill that will empower Commodity Futures Trading Commission (CFTC) to regulate spot markets for digital cmmoditoes.
The bill comes at a time when many Americans have lost billions of dollars after the price of bitcoin and other commodities collapsed. Also, several companies in the sector like Celsius and Voyager Digital recently went bankrupt.
The BTC/USD price also rose as investors reacted to the latest quarterly earnings. This week, highly influential companies with an exposure to the crypto industry reported strong results. As a result, shares of firms like SoFi and PayPal rose by 25% and 10%, respectively.
This performance helped lift the top US indices like the Dow Jones and S&P 500 sharply higher. The indices rose by more than 1.5%. In the past few weeks, the indices have had a positive correlation with bitcoin.
Bitcoin’s recovery was relatively muted after several Fed officials hinted that the bank will continue hiking interest rates even as signs of weakness emerge. The next key catalyst for Bitcoin will be the upcoming US non-farm payrolls data scheduled for Friday this week. Analysts expect the data to show that the labor market weakened in July.
The BTC/USD price moved sideways an the overnight session. It rose to about 23,600, which is at the middle of the rising channel shown in red. The pair is consolidating along the 25-period and 50-period moving averages while the Relative Strength Index (RSI) has moved slightly above the neutral point.
Therefore, the pair will likely continue the recovery process as investors target the upper side of the channel at 25,000. A drop below the support at 22,500 will signal that bulls have prevailed, which will see it retest the lower side of the channel.