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MENAFN- Daily Forex) Bullish view
- Buy the BTC/USD pair and set a take-profit at 65,000.
- Add a stop-loss at 58,000.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 59,000 and a take-profit at 57,000.
- Add a stop-loss at 64,000.
Bitcoin price rose above $60,000 in the overnight session as sentiment in the crypto industry improved ahead of the Federal Reserve decision. The BTC/USD pair was trading at the crucial resistance point at 60,000, up by over 15% from its lowest point this month.
Bitcoin's recovery happened as investors continued moving back to riskier assets like stocks and cryptocurrencies. Data shows that spot Bitcoin ETFs have had inflows in the last three consecutive days, which has brought the cumulative inflows to over $17.3 billion.
Blackrock's IBIT has attracted most of the inflows and has over $20 billion. It is followed by Fidelity's FBTC, Ark Invest's ARKB, and Bitwise's BITB, which have over $10 billion, $2.6 billion, and $2.6 billion, respectively.
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These ETFs will likely see more inflows in the coming months as investors focus on the friendlier macro climate. For one, the Federal Reserve is expected to start cutting interest rates by either 0.25% or 0.50% later today.
Bitcoin has also held steady because of the weaker US dollar. The US dollar index (DXY) dropped to a low of $100.52 on Friday as investors anticipated these cuts. In most periods, these risky assets tend to do well when the Fed is slashing rates.
There are also signs that some big Bitcoin holders are buying the coins. MicroStrategy announced that it bought coins worth $1 billion recently, and the company is now raising over $750 million for more purchases. These big purchases explain why the amount of coins in exchanges has dropped to a multi-year low/USD technical analysis
The 4H chart shows that the BTC/USD pair bottomed at 52,561 earlier this month after the US published mixed jobs numbers. It has bounced back to a high of 61,300, its highest point since August 27.
Bitcoin has also risen slightly above the 50-period Exponential Moving Average (EMA). It has also formed an inverse head and shoulders chart pattern, a popular bullish sign.
The BTC/USD pair has also risen above the 50% Fibonacci Retracement point. Therefore, the outlook for the coin is bullish, with the next point to watch will be at 65,000, its highest point on August 25. This view will be confirmed if it rises above the key resistance point at 61,300.
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