BTC/USD – The Bitcoin Pair May See a Bullish Breakout

Bearish View

Take Profit: 22,000
Stop Loss: 24,264
Timeline: 1 day

Bullish View

Buy Stop: 23,600
Take profit: 24,300
Stop loss: 22,000

The Bitcoin pair price saw a major trend reversal as it dropped from last week’ peak price of 25,266 and hit 22,523, which is the lowest price since 15th Feb. On daily charts, the pair has been showcasing a slow but steady bullish trend for the past weeks. But now the price has formed a double top pattern giving off bearish signals. But we can also see the pair giving bullish signs with the formation of a golden cross happening on the 200 day and 50 day MAs. The RSI has been moving downwards for a while. Based on the technical analysis, the BTC/USD pair is likely to fall further with a downtrend favouring sellers. 

Talking about fundamentals, The Federal Reserve’s monetary policy surely has an effect on all assets including BTC. We can see that the US PCE is at an elevated level from the data released last friday. The strong consumer inflation data that was published earlier also depicted a clear picture of the American economy as all eyes are set on the Fed for their next moves for tackling the inflation. The strong USD will be pushing the pair down which also points at a possible downtrend in the BTC market.