(MENAFN- Daily Forex) Bullish view
Buy the BTC/USD pair and set a take-profit at 62,718. Add a stop-loss at 56,000. Timeline: 1-2 days.
Bearish view
Set a sell-stop at 59,000 and a take-profit at 56,000. Add a stop-loss at 62,700.
Bitcoin price drifted upwards during the weekend as the recent consolidation phase continued. The BTC/USD pair rose to 60,000, a few points above last week's low of 56,140 and 21.4% higher than its lowest level this month.
Bitcoin has not had any major news recently. Exchange Traded Fund (ETF) inflows have fluctuated, with the year-to-date value standing at over $17 billion. In last week's filings, companies like Goldman Sachs, Morgan Stanley, and HSBC noted that they had bought some Bitcoin ETFs.
Meanwhile, more companies are adding more Bitcoins to their balance sheets. Marathon Digital, the biggest miner by market cap, acquired more coins, bringing the total holdings to over 25,000. MicroStrategy has also borrowed funds to acquire more coins.
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On the weekly chart, we see that the BTC/USD pair has formed a descending widening wedge pattern. In most cases, this is one of the most bullish patterns in the market.
The pair has also formed a hammer candlestick pattern, which is characterized by a long lower shadow and a small body. It is one of the most popular reversal candlestick patterns in technical analysis.
Additionally, the pair has remained above the 50-week moving average, meaning that bulls are still in control for now.
Looking back, the pair has been forming a cup and handle pattern whose initial top was the 2021 high of 69,223. The recent consolidation is part of the handle section.
Bitcoin's accumulation and distribution indicator has also continued rising and is nearing its all-time high. It has also moved to the third phase of the three-drive pattern.
Therefore, in the long run, the pair will likely continue rising as buyers target the upper side of the wedge pattern at 69,223. This view will become invalid if the BTC/USD pair retreats below the lower side of the hammer at 49,100/USD daily chart analysis
On the daily chart, we see that the Bitcoin price formed a hammer pattern on August 5 when most assets dived. It then bounced back and peaked at 62,718 on August 8 and has been in a tight range since then.
It formed a morning star pattern on August 15 and has been rising modestly. However, unlike on the weekly chart, it has remained below the 50-day moving average. Therefore, for more upside to happen, the pair will need to move above the 50MA and the key resistance point at 62,718.
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