Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

BTC/USD Forex Signal: Bitcoin Price Braces for More Gains

By 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.

Bullish view

  • Buy the BTC/USD pair and set a take-profit at 70,000.
  • Add a stop-loss at 64,000.
  • Timeline: 1-2 days.

Bearish view

  • Set a sell-stop at 65,000 and a take-profit at 63,000.
  • Add a take-profit at 68,000.

BTC/USD Signal Today - 16/05: BTC Eyes Gains (Chart)

The price of Bitcoin made a bullish breakout after the soft US inflation numbers sparked a risk-on sentiment in the financial market. The BTC/USD pair surged to a high of 66,000, its highest swing since April 24th.

Risk-on sentiment has prevailed

Bitcoin jumped sharply after a report revealed that inflation moderated in April, raising the probability that the Fed will start cutting rates later this year.

As a result, the fear and greed index rose to 52, up from this week’s low of 49. Also, the US dollar index tumbled to its lowest swing in over a month while American stocks surged to their highest levels on record.

The Dow Jones, S&P 500, and Nasdaq 100 indices soared to $39,900, $5,303, and $5,300, respectively. Also, the CBOE Volatility Index (VIX) tumbled by over 7% to $12.50.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Economic numbers revealed that the headline Consumer Price Index (CPI) softened from 0.4% to 0.0% while core inflation fell to 0.3%. Another report showed that the volume of retail sales dropped in April.

These numbers confirmed that the economy was softening. A previous report showed that the country’s consumer confidence and manufacturing PMI continued dropping.

Therefore, the Federal Reserve will likely start cutting rates in the third quarter of the year to supercharge the economy. Bitcoin and other risky assets perform well when the Fed is pointing to rate cuts ahead.

BTC/USD technical analysis

Bitcoin has been in a tight range in the past few days. On the daily chart, the pair has been forming an inverse head and shoulders pattern. It has now moved above its neckline, which is a positive sign.

Bitcoin has also risen above the Woodie pivot point at $63,265 and is nearing its first resistance level. Also, the pair has risen above the 50-day Exponential Moving Average (EMA) and the Ichimoku cloud indicators.

The Relative Strength Index (RSI) has pointed upwards to 57 while the Awesome Oscillator has formed three consecutive green bars and is nearing the neutral point. Therefore, the outlook for the pair is bullish, with the next target being at 70,000. The alternative scenario is where it retreats and retests the key support at 64,000.

Ready to trade our free trading signals? We’ve made a list of the best Forex crypto brokers worth trading with. 

Crispus Nyaga
About 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.
 

Most Visited Forex Broker Reviews