(MENAFN- Daily Forex) Bullish view

• Buy the BTC/USD pair and set a take-profit at 96,000.
• Add a stop-loss at 85,000.
• Timeline:1-2 days.

Bearish view

• Sell the BTC/USD pair and set a take-profit at 85,000.
• Add a stop-loss at 96,000.

The BTC/USD pair rebounded by over 6%, paring back some of the losses it made on Monday when the broader crypto market crash accelerated. Bitcoin price was trading at $92,000 up from this week's low of under $83,635.

The rebound happened after Donald Trump revealed that he had made his decision on who will be the next Federal Reserve Chair. He plans to unveil his name earlier next year, a move that will undercut Jerome Powell, an official who has been reluctant to cut rates.

Market participants believe that Kevin Hassett will become the next chair, a move that would benefit the crypto industry as he has expressed his support. He is also aligned with Donald Trump on the need to cut interest rates aggressively.

The BTC/USD pair also reacted to a statement by Paul Atkins, the head of the Securities and Exchange Commission (SEC), who expressed his support for the industry. He plans to start a crypto innovation exemption in January, a move that will make it easier for companies to launch their crypto products.

Meanwhile, demand for Bitcoin ETFs continued rising this week, a sign that investors are optimistic that the industry will rebound this year. This rebound also coincided with the performance of the stock market, with top indices like the S&P 500 and the Dow Jones rising by over 0.50% on Tuesday.

Bitcoin also rose after Michael Saylor's Strategy noted that it had over $1.4 billion in reserves to meet its short-term obligations like its dividend and interest rate payments. That announcement helped to calm down the markets after the CEO hinted that it would sell Bitcoin if the mNAV turned negative.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily timeframe chart shows that the BTC/USD pair has been in a strong downward trend in the past few months as it moved into a bear market. It retreated to a low of 83,780 on Monday as the crypto market crash accelerated.

The pair has now rebounded and moved above the important resistance level at 90,000. It remains below the 50-day and 100-day Exponential Moving Averages (EMA).

On the positive side, it has formed a bullish engulfing pattern, which is a common reversal sign.

Therefore, while this rebound may be a dead-cat bounce, there is a likelihood that it will continue rising as investors buy the dip. If the happens, the next key target to watch being at 96,000. A move below the support at 85,000 will invalidate the bullish outlook.

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