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MENAFN- Daily Forex) Bearish View
Sell the BTC/USD pair and set a take-profit at 92,000. Add a stop-loss at 104,000. Timeline: 1-2 days.
Bullish View
Buy the BTC/USD pair and set a take-profit at 104,000. Add a stop-loss at 93,000.
The BTC/USD pair retreated below 98,000 in the overnight session as the recent Bitcoin rally lost momentum. Bitcoin was trading at $97,965, lower than the year-to-date high of $103,935.
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The recent pullback is a sign of profit-taking among investors after the coin jumped by over 130% this year. In most periods, assets tend to pull back after rising to a key level of resistance. For example, Bitcoin dropped from a record high of $73,700 in March to $49,200 in August before bouncing back recently.
Bitcoin retreated even as MicroStrategy continued buying more coins last week. It purchased 21.5k more coins last week, the fifth consecutive week of purchases. It now controls about 2% of all coins that will ever exist, making it the biggest holder of these coins.
Other companies are accumulating Bitcoins. Marathon Digital has acquired 36,382 coins valued at over $3.54 billion. Riot Platforms, another big mining company, has acquired coins worth $1.1 billion. Other top holders of these coins are Tesla, Coinbase, CleanSpark, and Hut 8 Mining.
There are odds that other mainstream companies will start buying Bitcoins in the next few years. Already, most of the biggest hedge funds like Citadel, Millennium, and Rennaisance already own spot Bitcoin ETFs/USD Technical Analysis
The daily chart shows that the BTC/USD pair rose and peaked at about 104,000 last week. It remains above the 50-day and 100-day Exponential Moving Averages (EMA), which is a positive sign.
However, the Relative Strength Index (RSI) and the MACD indicators have formed a bearish divergence pattern. These divergences happen when the indicators are falling while the price is in an uptrend.
The pair has also formed a rising wedge pattern. This is a popular pattern, which happens when two ascending trendlines are converging. It often leads to a strong bearish breakout.
EURUSD Chart by TradingView
Therefore, there is a likelihood that the coin will drop in the coming days now that it no longer has momentum. If this happens, the next point to watch will be at 92,000, its lowest point last week. A move above its all-time high will invalidate the bearish view.
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