Bearish view
- Sell the BTC/USD pair and set a take-profit at 80,637.
- Add a stop-loss at 91,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 91,000.
- Add a stop-loss at 80,637.
Bitcoin price held steady above $87,000 as investors moved to risky assets amid hopes that the Federal Reserve will cut interest rates and as investors started to buy the recent dip. The BTC/USD pair was trading at 87,500, up from this month's low of 80,637.
Bitcoin Price Rebound Loses its Steam
The BTC/USD pair has rebounded in the past few days, moving from a low of 80,637 to the current 87,500. This rebound happened as investors bought the dip amid optimism that it will continue its rally.
One reason for the rebound is the rising optimism that the Federal Reserve will continue to cut interest rates in the coming meeting. This optimism rose after statements by some Federal Reserve officials, including Christopher Waller and Mary Daly.
Hopes of a rate cut rose after ADP published a weak jobs report, which showed that the private sector lost thousands of jobs last week. Another report also showed that consumer confidence plunged this month.
Bitcoin price also rose as the Crypto Fear and Greed Index plunged to the lowest level this year. In most cases, a plunging Fear and Greed Index is usually a bullish catalyst for cryptocurrencies.
Still, there are risks that the rebound may not last. For one, spot Bitcoin ETF outflows have continued falling in the past few weeks, a sign of weakening demand from American investors.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair plunged to a low of 80,637 last week from the year-to-date high of 126,050.
It remains below the important level at 107,324, the neckline of the double-top pattern, one of the riskiest patterns in technical analysis.
The pair remains below the 50-day and 200-day Exponential Moving Averages (EMA), which formed a death cross pattern on November 17.
Therefore, the pair will likely resume the downward trend, and possibly retest this month’s low of 80,636. A move to that level will be bullish as it will mark the formation of a double-bottom pattern. A drop below that level will point to more downside in the near term.
Ready to trade our free Forex signals? Here are the best MT4 crypto brokers to choose from.