Bullish view
- Buy the BTC/USD pair and set a take-profit at 119,000.
- Add a stop-loss at 112,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USSD pair and set a take-profit at 112,000.
- Add a stop-loss at 119,000.
Bitcoin price has held steady in the past few days as investors bought the dip. The BTC/USD pair was trading at 115,575, up from last Friday’s low of 106,895. It remains about 9% below the year-to-date high of 126,300.
Bitcoin has also rebounded as investors continued buying the dip. Data shows that investors bought exchange-traded funds (ETF) as they expect it to continue bouncing back. These funds added over $2.7 billion in assets last week after adding $3.2 billion in the previous week.
Bitcoin price also rose as investors reacted to the easing tensions between the United States and China. Analysts believe that the two sides will reach a deal towards the upcoming meeting between Donald Trump and Xi Jinping at the APEC Summit in South Korea.
The rising odds of a deal explains why the US stock market rallied, with the tech-heavy Nasdaq 100 Index rising by 2.2% and the S&P 500 surging by 1.56%. The US Dollar Index and other assets like gold also continued rising.
Looking ahead, the next important news that will move Bitcoin will be the upcoming statement by the Federal Reserve Chair. In it, he will provide more information on what to expect in the coming meeting, especially now that the government shutdown is continuing.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair has rebounded after bottoming at 106,895 on Friday as the crypto market plunged. It rose and found substantial resistance at 115,700, which is along the 50-day Exponential Moving Average (EMA).
The pair has also moved inside the ascending channel and is at the top of the trading range of the Murrey Math Lines tool. Therefore, one potential outcome is where it keeps rising as bulls target the strong pivot point at 118,750. The other alternative is where it resumes the downtrend as it signals that this rebound was a dead-cat bounce. Such a move would push it to the lower side of the channel at 109,375.
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