BTC/USD Forex Signal: Pullback To Happen Before Hitting 30K

(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 stop-loss at 30,000.
  • Timeline: 1-2 days.
Bullish view
  • Set a buy-stop at 28,500 and a take-profit at 30,000.
  • Add a stop-loss at 27,000.

Bitcoin was little changed during the American and Asian sessions as traders waited for the upcoming Fed decision. The BTC/USD pair was trading at 28,200, a few points below this week's high of 28,500. bitcoin remains ~44% above the lowest point this month.BTC and stocks rally ahead of Fed

The BTC/USD price moved sideways as American stocks, including banks, jumped on Tuesday. Shares of First Republic, the embattled bank, rose by over 20% as regulators worked to rescue the company. As a result, key American indices like the Dow Jones and Nasdaq 100 index jumped by more than 0.50% on Tuesday. In most periods, Bitcoin has a close correlation with these indices.

The US dollar index has pulled back to $102.90 while bond yields have moved away from their highest levels this year. Bitcoin tends to move in the opposite direction with the US dollar.

The main catalyst for the BTC/USD pair will be the upcoming interest rate decision by the Federal Reserve. Economists polled by Reuters expect that the Fed will sound a bit balanced in this meeting. It is inclined to hike rates by 0.25%, lower than the 0.50% that Jerome Powell hinted in his testimony to Congress.

The bank will need to show that it is still fighting inflation while being concerned about the health of the financial sector. Recently, several banks have fallen and there is a possibility that further hikes will lead put more banks under pressure.

Meanwhile, data published on Tuesday showed that home prices dropped for the first time since 2012. The median home price dropped by 0.2% in February, continuing a trend that has been going on in the first few months.BTC/USD technical outlook

The BTC/USD pair has been in a strong bullish trend in the past few days. This rally has seen it move from below $20,000 to over 28,000. It is supported by the rising 25-period and 50-period exponential moving averages. However, the MACD and the Relative Strength Index (RSI) have started forming a bearish divergence pattern.

Therefore, there is a possibility that the BTC/USD pair will have a bearish breakout as sellers target the key support level at 26,000. A move above the key resistance point at 28,500 will invalidate the bearish view.

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