(MENAFN- Daily Forex) Bullish View

• Buy the BTC/USD pair and set a take-profit at 120,000.
• Add a stop-loss at 110,000.
• Timeline: 1-2 days.

Bearish View

• Sell the BTC/USD pair and set a take-profit at 110,000.
• Add a stop-loss at 120,000.

Bitcoin price held steady above $115,000 as investors embraced a risk-on sentiment ahead of the Federal Reserve interest rate decision. The BTC/USD pair rose to 116,298, up by 11% from its lowest point this month.

Bitcoin's jump coincided with the performance of the stock market, with the main US indices like the S&P 500 and Nasdaq 100 indices soaring to their all-time highs.

At the same time, gold, which has become a popular safe-haven asset, dropped below the important support level at $4,000 for the first time in weeks.

Bitcoin and other cryptocurrencies rose after Chinese and American officials inked a framework for a deal that prevents the trade war from escalating. China will delay its rare earth materials export controls by a year and restart buying US soybeans.

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The deal, which will likely be signed on Thursday, helped to ease the existing tensions between the two biggest economies. It will also help to reduce the odds of high inflation in the US.

The BTC/USD pair also jumped as traders waited for the upcoming Federal Reserve interest rate decision, which will come out on Wednesday. Economists expect that the bank will cut interest rates by 0.25% in the upcoming meeting.

Bitcoin and other cryptocurrencies normally rally when the Federal Reserve is cutting interest rates because that normally reduces the cost of capital. For example, the crypto market rallied during the pandemic as the bank slashed interest rates by 0.25%.

Bitcoin price has also jumped as investors bought the recent dip, which happened earlier this month when Trump threatened new tariffs on China.

Additionally, many institutional companies have started embracing the crypto industry, including JPMorgan, which said that it would start accepting Bitcoin as a collateral for loans. This is notable since Jamie Dimon, its CEO, was once one of the coin's top critics.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily timeframe chart shows that the BTC/USD pair has bounced back after bottoming at 103,360 earlier this month. It has now jumped to over 115,000 and is within a few points below the all-time high of 126,400.

Bitcoin has moved above the Major S/R pivot point of the Murrey Math Lines and the 50-day and 100-day Exponential Moving Averages (EMA).

The Relative Strength Index (RSI) has moved above the neutral point at 50 and is pointing upwards, while the two lines of the MACD indicator have formed a bullish crossover pattern.

Therefore, Bitcoin price will likely continue rising as bulls target the next key resistance level at 120,000. A drop below the key support level at 110,000 will invalidate the bullish outlook.

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