The pair will likely keep rising as bulls target the all-time high of more than 66,000.
Buy the BTC/USD and add a take-profit at 66,000.
Add a stop-loss at 62,000.
Timeline: 1-2 days.
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.
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.
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.