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BTC/USD Forex Signal: Inverse Head and Shoulders is Slowly Forming

Bearish view

  • Sell the BTC/USD pair and set a take-profit at 60,000.
  • Add a stop-loss at 66,000.
  • Timeline: 1-2 days.

Bullish view

  • Set a buy-stop at 64,300 and a take-profit at 66,000.
  • Add a stop-loss at 60,000.

BTC/USD Signal Today - 0704: Inverse H&S is Forming (Chart)

Bitcoin price rose to a two-week high of $65,525 on Monday and then quickly erased some of those gains to trade at $63,225 on Tuesday morning. The pullback happened after the Securities and Exchange Commission (SEC) continued its enforcement actions.

The SEC filed a Wells Notice against Robinhood, one of the biggest brokers in the United States. In a statement, the agency alleged that Robinhood was violating securities laws by offering unregistered financial securities.

The agency has filed similar lawsuits before. It has targeted companies like Kraken, Coinbase, and Binance. Just last week, a court jailed Changpeng Zhao to four months in prison. One of his crimes was offering unregistered securities through his Binance platform.

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    Robinhood has rejected these claims and vowed to defend itself against SEC’s allegations in court. The challenge among most companies is that there is a thin line between securities and digital commodities.

    The SEC views Bitcoin as a digital commodity and tokens like Ethereum, Solana, and Polkadot as securities.

    The new Wells Notice came at a time when Bitcoin lacked a clear catalyst. Halving has already happened while the SEC has approved Bitcoin ETFs. Recent data showed that most of these funds have seen some outflows in the past two weeks.

    Bitcoin has rebounded slightly after the weak economic numbers from the US. Data showed that the nonfarm payrolls (NFP) rose by 175k in April while the unemployment rate rose to 3.9%. The average earnings rose by 3.9%, down from 4.1% in March.

    BTC/USD technical analysis

    The price of Bitcoin has rebounded sharply in the past few days. It rallied from a low of $56,500 to a high of $65,525. This rally accelerated after the US released weak jobs, manufacturing and services PMIs, and US consumer confidence report.

    The BTC/USD pair retreated on Tuesday after forming a shooting star pattern. It has remained above the 50-period and 25-period Exponential Moving Averages (EMA). It is also above the Woodie pivot point point.

    A closer look shows that Bitcoin is forming an inverse head and shoulders pattern, which is a popular bullish sign. Therefore, the pair will likely continue falling as sellers target the right shoulder section at 60,000. This view will be confirmed if the pair drops below the Woodie pivot point at 62,300.

    Ready to trade our daily Forex signals? Here’s a list of some of the best crypto brokers to check out. 

    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.
     

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