Dec 12, 2024 (MENAFN via COMTEX) --
(MENAFN - Daily Forex) Bearish View
Sell the BTC/USD pair and set a take-profit at 93,500. Add a stop-loss at 96,500. Timeline: 1-2 days.
Bullish View
Set a buy-stop at 96,000 and a take-profit at 98,000. Add a stop-loss at 93,500.
The BTC/USD pair remained under pressure as the recent surge in the cryptocurrency market waned. Bitcoin dropped below the important resistance level at $95,000 for the first time in two days as some investors started to sell their coins.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money
Its performance mirrored that of the American stock market, which has remained on edge this week. The Dow Jones index remained at $44,400, while the S&P 500 and Nasdaq 100 indices dropped by less than 0.10% on Tuesday. These indices have barely risen this week.
At the same time, American bond yields have held steady this week. The ten-year yield rose to 4.22%, while the 30-year and 5-year yields rose to 4.41% and 4.1%, respectively. The
US dollar index has also risen to $105.5.
This price action is happening as traders waited for the upcoming US inflation data, which will have an impact on the Federal Reserve. If the numbers come hotter-than-expected, there are rising odds that the Fed will decide to leave interest rates unchanged next week.
Bitcoin and other assets tend to be impacted by the actions of the Fed and other central banks. In most periods, they rise when the Fed is cutting rates, and vice versa. That has happened this year as the Fed started to wind down its two-decade high rates.
Bitcoin is still seeing strong demand from investors. Its ETFs had over $479 million in inflows on Monday. It was the eighth consecutive day of gains, which has brought its total asset inflows to over $33.9 billion/USD Technical Analysis
The daily chart shows the BTC/USD pair peaked at $103,900 earlier this year and then pulled back. Historically, assets tend to pull back slightly after hitting a key resistance level.
Bitcoin has found support at the 25-day moving average. It has also found support at the lower side of the ascending channel shown in black. The Relative Strength Index (RSI) and the Stochastic Oscillator have tilted downwards.
EURUSD Chart by TradingView
Therefore, the pair could drop further in the next few days since it has formed a rising wedge chart pattern. If this happens, the pair will likely drop and possibly retest the 50-day moving average at 94,270. A break below that level will point to more downside to 90,000.
The alternative scenario is where the pair rises to the upper side of the channel at 101,000.
Ready to trade our
free Forex signals
on Bitcoin? Here's our list of the best
crypto brokers
worth looking at.
MENAFN11122024000131011023ID1108982684
)
COMTEX_460761408/2604/2024-12-12T02:45:39
