BTC/USD Signal Today 01/07: Bearish Pennant Downside (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the BTC/USD pair and set a take-profit at 65,000.
• Add a stop-loss at 61,000.
• Timeline: 1-2 days.

Bearish view

• Set a sell-stop at 63,000 and a take-profit at 60,000.
• Add a stop-loss at 65,000.

Bitcoin price bounced back on Monday morning as traders bought the weekend dip when it crashed to $60,000. The BTC/USD pair rebounded to over 63,400, its highest level since June 23rd. It remains significantly lower than last month's high of $72,000 waits for the next catalyst

Bitcoin and other altcoins remained under pressure
during the weekend as demand for cryptocurrencies waned. The decline happened after the Securities and Exchange Commission (SEC) delayed approving spot Ethereum Exchange Traded Funds (ETFs).

Still, the agency has signaled that it will ultimately approve these ETFs in the year's second half. In a recent statement, Gary Gensler hinted that the approval would happen by September.

Bitcoin has also retreated as the volume of outflows from ETFs continued. Most spot ETFs like the iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin ETF (FBTC) have recorded substantial outflows in the past few weeks.

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At the same time, Tether's growth has stalled in the past few weeks. The stablecoin has a market cap of $112.5 billion, where it has been stuck for a while. Tether is an important part of the crypto universe since it is the most widely used currency in transactions.

The BTC/USD pair also pulled back as the supply of coins increased. Data by CoinGlass shows that the volume of Bitcoin balances in exchanges has continued rising in the past few weeks.

This supply has come from Bitcoin mining companies like Riot Platforms and Marathon Digital. It has also come from the German government, which sold thousands of coins in June/USD technical analysis

The daily chart shows that Bitcoin price topped at $71,895, where it struggled to moved above on May 21st and June 7th. It formed a double-top pattern, a popular bearish sign in the market.

The pair bounced back on Monday, moving above the 50-period and 25-period Exponential Moving Averages (EMA), In technical analysis, moving above these levels is often seen as a positive thing.

Bitcoin has also invalidated the bearish pennant pattern that has been forming in the past few days. A pennant is a popular continuation sign. Oscillators like the Relative Strength Index (RSI) and the MACD have also turned positive.

Therefore, the BTC/USD pair will likely continue doing well on Monday as investors target the key resistance point at 65,000.

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