Bearish view
- Sell the BTC/USD pair and set a take-profit at 80,000.
- Add a stop-loss at 90,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 80,000.
The BTC/USD pair has pared back some of the gains it made last week as some investors started to book profits. Bitcoin price was trading at $85,800 on Monday, up from last month’s low of $80,495. It remains much lower than the year-to-date high of $126,300.
Bitcoin Price On Edge Amid Fear in the Market
The BTC/USD pair rebounded by over $10,000 last week as investors bought the dip and as the odds of Federal Reserve interest rate cut soared.
Data on Polymarket showed that the odds that the bank will cut rates in its final meeting of the year moved to over 80%. This is a big increase considering that the odds dropped to below 40% a while ago.
The Fed will likely continue cutting rates now that Donald Trump is said to be considering naming Kevin Hassett to be the next chair. Hassett, who serves in his administration, has always advocated for lower rates.
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Meanwhile, the BTC/USD pair rose as ETFs recorded a $70 million inflow last week. While not a big number, it was encouraging in that these funds had previously shed assets in the previous four consecutive weeks. Also, the inflows would have been more if the market was open for five days.
Bitcoin price also rose as the Crypto Fear and Greed Index and open inerest rose gradually. The index rose to 18 from a low of 8 during the month, while the future open interest rose above $60 billion, a sign of robust demand.
Additionally, it soared as the US stock market continued rising, with the Dow Jones and the S&P 500 holding steady near their all-time highs.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair bottomed at 80,495 in November and then rebounded to above $92,000. Still, the coin remains below the 100-day moving average, presenting a risk that this could be a dead-cat bounce.
The pair has formed a shooting star candlestick pattern, which is a common bearish reversal sign. Therefore, the pair may retreat further this week as some traders start taking profits. Such a drop may see it drop to 80,000. Such a drop to will be bullish as it will mean that it has formed a double-bottom pattern, a popular bullish reversal sign.
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