BTC/USD – The Possibility Of A Bullish Breakout Is There For The Pair

March 16, 2023
The possibility of a bullish breakout is there for the pair

Table of Contents

Bullish View

  • Buy Stop – 24,700
  • Take profit – 26,548
  • Stop loss – 23,500
  • Timeline: 1 day

Bearish View

  • Sell Stop – 23,000
  • Take Profit – 22,000
  • Stop Loss – 24,500

Firstly we witnessed the price of the pair soaring to the highest point since last October and then the pair experienced a pull back. But we can feel at ease as the price is still way higher compared to last week’s low. The UK, US and Asian stock markets were experiencing a crash and meltdown which somehow reflected in the Bitcoin market too. We could see a similar decline in the US and European bond prices as well. This must be a result of the adversities in the banking sector of both economies. As the BTC/USD pair is linked with the global stock markets, we did expect a price drop happening for the pair. The strong USD somehow accelerated the fall quite a bit.

Looking at the 4H charts, we witnessed a fall to the key support level at 25,275 which was apparently the highest point in the month of Feb. it is still drifting above all MAs and also formed a tiny head and shoulders pattern. On the other hand, MACD signal line seems to have made a bearish crossover pattern. We can surely expect more volatility for the pair before the weekend. There could be some traders in the market who are interested in buying the dip which may cause a bullish breakout later on. Overall, the outlook is quite optimistic for the pair but with a prevalence of risks.

Author Amsterdam