BTC/USD Signal 05/11: Bitcoin On The Cusp Of A Breakout

(MENAFN- Daily Forex) Bullish view

Buy the BTC/USD pair and set a take-profit at 84,000. Add a stop-loss at 76,000. Timeline: 1-2 days.

Bearish view

Sell the BTC/USD pair and set a take-profit at 76,000. Add a stop-loss at 84,000.

Bitcoin price bounced back, reaching its highest level since October 29. BTC/USD pair rose to 80,510, up modestly from this week's low of 75,800. This rebound may continue as investors embrace a risk-on sentiment.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money Bitcoin Price Steady After US Midterm Elections

BTC/USD has been in a downward trend in the past few weeks as investors waited for the midterm elections, in which most polls expected Democrats to do well. The view is that Democrats will do away with the CLARITY Act, which the crypto industry has advocated.

Democrats are also expected to launch investigations on the crypto industry, including on President Donald Trump's World Liberty Financial and Trump meme coins.

With the elections now over, investors are buying the dip. That explains why Bitcoin and most altcoins are rising after the election. Also, it explains why investors are buying US stocks, with the Nasdaq 100 and S&P 500 indices rebounding.

Bitcoin also rose as investors start buying the dip. Data shows that spot Bitcoin ETF inflows jumped for the first time this week. In a statement, Robert Kiyosaki said that he was continuing buying Bitcoin.

A key reason why investors are buying the coin is because of the rising US debt, which has jumped to over $40.5 trillion, a few months after it crossed the $40 trillion mark. This debt will likely continue growing in the coming years, making Bitcoin more attractive to investors.

The next important catalyst for the BTC/USD pair will be the upcoming US nonfarm payrolls (NFP) data. Economists expect the data to show that the economy added 63k jobs last month, while the unemployment rate remained at 4.2%. These numbers will be important because of the Federal Reserve.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily chart shows that the BTC/USD pair has been in a strong sell-off in the past few weeks. It has now bounced back to the upper side of the descending channel. The coin has also moved abov the 23.6% Fibonacci Retracement level.

On the positive side, it has remained above the 50-day moving average. Also, the Relative Strength Index (RSI) and the MACD are moving upwards. Therefore, the pair will likely continue rising as bulls target the key resistance level of 84,000. A move belowthe support level of 76,000 will invalidate the bullish outlook

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