BTC/USD Forex Signal 20/01: Bullish Outlook (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the BTC/USD pair and set a take-profit at 94,390.
• Add a stop-loss at 90,000.
• Timeline: 1-2 days.

Bearish view

• Sell the BTC/USD pair and set a take-profit at 90,000.
• Add a stop-loss at 94,390.

Bitcoin price continued its retreat, falling to a low of $92,550, its lowest level since January 13. The BTC/USD pair has now dropped by over 5.3% from its highest level this month Price Rally Eases

The BTC/USD pair dropped sharply, mirroring the performance of other financial assets as geopolitical risks rose. It plunged as investors reacted to the latest statement from Donald Trump on the Greenland issue.

Trump threatened to impose tariffs on several Nato members if the US fails to succeed in its goal to acquire Greenland, a semi autonomous island owned by Greenland. He has argued that the acquisition is necessary for national security reasons.

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The announcement pushed more investors to embrace a risk-off sentiment, which explains why global stocks plunged on Monday.

Bitcoin has also proven that it is not a safe-haven asset as some analysts have long believed. Instead, investors shifted to gold whose price surged to a record high on Monday.

Bitcoin price also declined as spot BTC ETF outflows rose. Data shows that these ETFs shed over $350 million on Friday last week, a trend that continued this week.

The outflows also increased because of the ongoing concerns about the CLARITY Act, which stalled last week in the Senate Banking Committee after Coinbase withdrew its support. Coinbase is concerned about stablecoin rewards, which banks and credit unions have lobbied against, warning that they will lead to capital flight.

The BTC/USD pair will react to the upcoming macro data from the United States, including the personal consumption expenditure (PCE) data. These numbers will provide more information about what to expect from the Federal Reserve later this year.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily timeframe chart shows that the BTC/USD pair has retreated in the past few weeks, moving from a high of 97,730 to the current 92,560, its lowest level in over a week.

It has moved below the key support level at 94,392, the upper side of the ascending triangle pattern. On the positive side, the pair remains above the 50-day Exponential Moving Average (EMA).

Therefore, the pair will likely resume the uptrend as bulls target the key resistance level at 94,400.

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