BTC/USD Forex Signal: Short Pullback To 26,000 Can't Be Rule
Date
3/21/2023 2:21:35 PM
(MENAFN- Daily Forex) Advertisement test out this trade suggestion with a top-rated btc/usd broker get started Bearish view Sell the btc/usd pair and set a take-profit at 26,000. Add a take-profit at 29,500. Timeline: 1 day.
Bullish view Set a buy-stop at 28,700 and a take-profit at 30,000. Add a stop-loss at 26,000.
Bitcoin has emerged as one of the biggest winners of the ongoing banking crisis. The BTC/USD pair soared to a high of 28,556, the highest point since June last year. It has jumped by over 40% from the lowest point this month. In the same period, stocks have remained under pressure while gold crossed the psychological level of 2,000.
Bitcoin continued hovering near the highest point in months following the rescue of Credit Suisse, which wiped out bondholders. The company's shareholders also lost substantial sums of money since the purchase price was lower than its valuation on Friday. As a result, the shares plunged by over 50% in New York.
Therefore, Bitcoin seems to have become a risk-on asset during this crisis. This is evidenced by its strong performance during the banking crisis and the inflows into crypto exchanges like Binance, Coinbase, and Bitfinex. Further, data in the futures market shows that open interest has jumped to the highest point in months.
The BTC/USD pair has also risen as investors increase their bets that the federal reserve will sound a bit dovish this week. They believe that the bank will want to balance the need to continue fighting inflation and to protect the financial market. As such, the base case is that the bank will hike rates by 0.25% on Wednesday.BTC/USD technical analysis
The BTC/USD pair has been in a strong upward trend since Saturday last week. It managed to move above the key resistance point at 25,203, the highest point on February 16 and 21. It also recently moved above the key point at 26,541 (March 14 high). The pair's bullish trend is supported by the 20-period and 50-period volume-weighted moving averages (VWMA).
However, the pair has formed a bearish divergence pattern that is shown in blue. In most cases, this pattern is usually a bearish sign. The Stochastic Oscillator has also formed a bearish divergence. Therefore, there is a likelihood that the pair's bullish trend will take a breather in the coming days.
If this happens, the next point to watch will be the key point will be at 26,000. This pullback will likely be temporary as the BTC/USD pair targets the key psychological level of 30,000.
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