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MENAFN- Daily Forex) Bullish view
Buy the BTC/USD pair and set a take-profit at 68,000. Add a stop-loss at 60,000. Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 60,000. Add a stop-loss at 68,000.
Bitcoin remained in a tight range during the overnight session as risky assets pulled back. The BTC/USD currency pair retreated to 63,400, a few points below this week's high of 64,800. It remains over 20% above its lowest level this month, meaning that it has moved into a technical bull market.
Bitcoin's pullback coincided with what happened in the stock market where the Dow Jones retreated by 255 points. The S&P 500 and the Nasdaq 100 indices also dropped by 0.15% amd 0.60%, respectively.
The retreat also happened as the US dollar index (DXY) rose by almost 50 basis points to $100.61. This price action happened as geopolitical tensions in Europe and the Middle East rose.
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President Putin has warned that he was open to use nuclear weapons if his country was attacked. At the same time, time, there are risks that the war between Israel and Hezbollah will escalate in the coming weeks. Historically, Bitcoin tends to outperform when there are significant risks/USD technical analysis
Bitcoin price peaked at $73,750 earlier this year and then pulled back to a low of $49,000 last month. Most recently, it dropped to a low of $52,o00 earlier this month as concerns about the American economy remained.
Most recently, it has bounced back and moved to over $63,000. Along the way, the BTC/USD pair has moved above the 50-day and 200-day Exponential Moving Averages (EMA). By moving above the two, it means that the coin avoided forming a death cross chart pattern.
A death cross pattern is often seen as one of the worst situations in the market. The last time it formed in 2022, Bitcoin retreated by over 60%.
The BTC/USD pair has also formed an inverse head and shoulders chart pattern, a popular bullish sign. It has also formed a falling broadening wedge chart pattern, a popular bullish sign.
The MACD indicator has continued rising, with the two lines hovering at the highest point since July 30. Also, the Relative Strength Index (RSI) has moved above the neutral level.
Therefore, more upside will be confirmed if the BTC/USD moves above the key resistance point at 64,800. If this happens, the pair will likely continue rising as bulls target the upper side of the wedge pattern at 68,000.
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