BTC/USD Forex Signal Today 02/04: Bearish Flag (Chart)

(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 80,000.
• Add a stop-loss at 89,000.
• Timeline: 1-2 days.

Bullish view

• Buy the BTC/USD pair and set a take-profit at 89,000.
• Add a stop-loss at 80,000.

Bitcoin price rose above the crucial resistance point at $85,000 as cryptocurrencies stabilized. The BTC/USD pair was trading at 85,110, up by 11% from its lowest level in March this year.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Bitcoin price has stabilized

The BTC/USD pair has remained in a tight range as some investors bought the dip following the recent dip. This rebound happened as other altcoins recovered. Ethereum price rose and is nearing its $2,000 level, while the market capitalization rose by 1.7% to $2.73 million.

Cryptocurrency prices rose even as the stock market retreated. The Dow Jones dropped by 200 points, while the S&P 500 and Nasdaq 100 fell by 0.50%.

The main catalyst for the upcoming for the BTC/USD pair will be the upcoming Liberation Day tariffs. Donald Trump will unveil his reciprocal tariffs on imported goods from most of the US trading partners.

Most of these partners have vowed to retaliate and implement tariffs of their own. Trump has also hinted that he will retaliate to these retaliations, escalating a trade war that could lead to a recession.

Analysts from some of the biggest companies have warned that the US may plunge into a recession once these tariffs kick in. Goldman Sachs analysts raised their recession odds to 35%, joining the likes of PIMCO who have done the same.

A recession, while bad for the US economy, there is a likelihood that it will be a good thing for cryptocurrencies like Bitcoin and Ether. That's because, in theory, a recession would suppress consumer spending and lead to low inflation.

A recession would also push the Federal Reserve to intervene in the market by cutting interest rates and implementing quantitative easing, which will boost the prices of risky assets.

EURUSD Chart by TradingViewBTC/USD technical analysis

The daily chart shows that the BTC price bounced back and moved above $85,000 on Wednesday morning. Even so, the BTC/USD pair remains below the crucial support level at 89,155, the neckline of the double-top pattern at 108,410.

The pair recently formed a break-and-retest pattern by retesting that price. It has also remained below the 50-day moving average and 38.2% Fibonacci Retracement.

Bitcoin has formed a bearish flag pattern, and is now forming its rectangle section. Therefore, the BTC/USD pair will likely have a bearish breakdown, with the next point to watch being the psychological point at 80,000.

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