BTC/USD Forex Signal 11/12: Bitcoin Pullback (Chart)

(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 88,000.
• Add a stop-loss at 95,000.

Bullish view

• Buy the BTC/USD pair and set a take-profit at 95,000.
• Add a stop-loss at 90,000.

Bitcoin price remained in a tight range as traders reflected on the latest Federal Reserve interest rate decision and its impact on risky assets. The BTC/USD pair was trading at 92,000, a level it has remained at in the past few days Analysis Suggests BTC/USD Pair May Slide

The daily timeframe chart shows that BTC/USD pair has been crawling higher in the past few days, moving from a low of 80,637 on November 21 to 92,00 today.

Still, this rebound does not feel strong enough, meaning that the pair may resume the downward trend for the coming days. For one, the Average Directional Index (ADX), which measures the strength of a trend, has dropped from 45 to 28. A falling ADX indicator is usually a sign that an asset's trend is losing steam.

The BTC/USD pair remains below the 50-day Exponential Moving Average. Ideally, it needs to move above this average to confirm the bullish breakout. It is also stuck below the Supertrend indicator.

Worse, Bitcoin price has formed a rising wedge pattern, which is made up of two ascending and converging trendlines. This wedge is part of the formation of a bearish pennant pattern, which normally results in a continuation of the original trend.

Therefore, there is an elevated risk that Bitcoin will resume the downward trend as investors sell the Federal Reserve interest rate cut news. Such a move may bring it to the psychological level at 85,000.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Bitcoin Price Wavers After Fed Cut

The main catalyst for the BTC/USD pair is the latest Federal Reserve interest rate decision, which came out on Wednesday.

The decision was quite bullish for the coin as the bank decided to cut interest rates by 0.25% and then reviewed a plan to buy short term government bonds worth $40 billion a month in a strategy that closely resembles quantitative easing policy. It hopes that the policy will help it rebuild its reserves, which dwindled during its quantitative tightening phase.

EURUSD Chart by TradingView

Bitcoin also attracted inflows from American investors, who bought ETFs for the second day in a row. These funds have had cumulative inflows of over $57 billion, with BlackRock's IBIT having over $72 billion in net assets.

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