Bullish View
- Buy the BTC/USD pair and set a take-profit at 125,000.
- Add a stop-loss at 115,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 115,000.
- Add a stop-loss at 125,000.
The BTC/USD pair held steady below its all-time high, even as market participants embraced a risk-on sentiment after the latest US inflation data. Bitcoin was trading at the psychological point at $120,000, up by over $8,000 from the lowest level this month.
BTC/USD Technical Analysis
Bitcoin price has rebounded after bottoming at $112,000 earlier this month and is now hovering near its all-time high of 123,200. The three-day chart shows that it has formed a small double-top pattern at $122,250, and whose neckline is at $112,000.
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A double-top is one of the most bearish chart pattern in technical analysis. Its price target is normally estimated by first measuring its height by subtracting the neckline from the upper side. In this case, the difference between the two is $10,250.
The target price is then estimated by subtracting the height from the neckline, which, in this case, brings the target price to $101,700.
The bearish Bitcoin price forecast will be invalidated if the price rises above the double-top point at $122,250. A move above that level will point to more gains, potentially to the psychological level of $125,00, which coincides with the ultimate resistance level of the Murrey Math Lines at 125,000.
Risk-On Sentiment Prevails
The BTC/USD pair has remained steady this week as market participants embraced a risk-on sentiment. This sentiment has spread as investors reacted to the rising hopes of the Federal Reserve cutting interest rates.
Most market participants boosted this view after the US released weak jobs numbers earlier this month. That report showed that the economy created over 73,000 jobs, missing the average estimate by analysts.
The odds of a cut remained at an elevated level after the latest consumer inflation data on Tuesday. While inflation remained above the Federal Reserve target of 2.0%, its rise was not all that dramatic. Instead, the data showed that the headline consumer price index remained at 2.7%, while the core figure rose to 3.1%.
Bitcoin is also rising as investors cheered the ongoing accumulation by American investors. Spot Bitcoin ETFs have had over $500 million inflows this week, a trend that is continuing. These funds have had a cumulative inflow of over $54 billion this year. Also, Bitcoin Treasury companies like Metaplanet have continued their accumulation.
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