Bullish view
- Buy the BTC/USD pair and set a take-profit at 95,000.
- Add a stop-loss at 85,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 85,000.
- Add a stop-loss at 95,000.
Bitcoin price rebounded and moved above the key resistance point at $90,000 for the first time since November 20 as the recent rally continued. The BTC/USD pair has jumped to a high of 90,200, up by 12% above the lowest point this month.
Bitcoin has rallied this week because of the expectation that it was a bargain. One of the main reasons for this is that it became extremely oversold level on the daily chart. The Relative Strength Index (RSI) bottomed at the oversold level this month.
The BTC/USD pair also rose as the Crypto Fear and Greed Index tumbled to the lowest point this year. It is common for the pair to rebound whenever it moves to the extreme fear zone. Similarly, Bitcoin often retreats whenever it moves to the extreme greed zone.
The same happens when there is a lot of negative headlines from mainstream media publications like Bloomberg and the Financial Times.
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Bitcoin price also rebounded as investors placed their bets that the Federal Reserve will cut interest rates in the coming meeting. Data compiled by Polymarket and Kalshi shows that odds of these rate cuts have jumped to 83% from below 40% last week. Bitcoin and other altcoins often do well when the bank is cutting rates.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair has rebounded in the past few days. It has bounced from a low of 80,637 last week, where it formed a hammer candle. A hammer is made up of a small body and a long lower shadow. It is one of the most bullish patterns in technical analysis.
The Relative Strength Index (RSI) has moved from last week’s low of 23 to 37. A rising RSI is a sign that the bullish momentum is continuing.
Bitcoin has moved above the Strong, Pivot, Reverse point of the Murrey Math Lines at 87,500. Moving above that level is a bullish sign as it shows that the pair is gaining momentum. Therefore, the pair will likely continue rising as bulls target the major S&R pivot point at 100,000.
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