Bullish view
- Buy the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 92,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 92,000.
- Add a stop-loss at 100,000.
The BTC/USD pair pulled back slightly on Monday as the recent rally took a breather ahead of the Federal Reserve interest rate decision. Bitcoin price was trading at $95,000, few points below last week’s high of $97,703. This price is about 28% above the lowest level this year.
Bitcoin price waits for Fed decision
The BTC/USD pair has been in a bullish trend in the past few weeks as investors moved to risky assets, including the stock market. The top indices like the Dow Jones, S&P 500, and Nasdaq 100 indices have all jumped in the past few weeks, and are about to recover the losses they made last month.
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Bitcoin rose after the US published weak economic numbers last week. A key report by the Bureau of Economi Analysis showed that the economy contracted by 0.3% in the first quarter as imports surged. Another key data revealed that the US consumer confidence plunged in August.
These numbers, while bad, are positive for Bitcoin and other risky assets as they point to a potential interest rate cut by the Federal Reserve. Analysts expect that the Fed will leave interest rates unchanged at 4.50% this week. However, with the economy slowing, there is a likelihood that the bank will start cutting rates in the June meeting.
The BTC/USD pair also rose after Donald Trump and Chinese officials pointed to future talks on trade. According to the WSJ, Trump is preparing to offer a tariff cut, while China is prepared to offer a deal on fentanyl.
With the US economy contracting, and with the stock market trailing its global peers, there is a likelihood that the two countries will start talking, which would boost Bitcoin and other risky assets.
BTC/USD technical analysis
The daily chart reveals that the Bitcoin price has been in a bullish trend in the past few weeks. It has moved above the key resistance level at 88,850, the highest swing in April.
Bitcoin remains above the 50-day and 200-day moving averages, signaling that bulls are gaining momentum. The Murrey Math Lines tool has moved above the strong pivot reverse point.
Therefore, the BTC/USD pair will likely continue soaring as bulls target the key resistance level at 100,000. A drop below the key support at 92,000 will invalidate the bullish outlook.
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