Risk-taking and anti-USD sentiment are extending bitcoin’s gains against the U.S. dollar!
How high will BTC/USD fly before the OG crypto goes back to its longer-term downtrend?
If the downtrend picks up, it could accomplish that at these levels:
Bitcoin (BTC/USD) Every day Chart by TradingView
Unless you’ve been too busy binging on the 2024 Emmy Awards winners, you need to know that the Fed recently cut its rates of interest by 50 basis points, a bit higher than the 25-basis-point cut that the markets were pondering weeks ago.
FOMC members also hinted at future rate cuts this yr and the subsequent, which might be why the U.S. dollar is struggling against its “riskier” counterparts.
Speaking of “dangerous,” bitcoin – one in all the riskiest major assets on the market – is profiting from improved market sentiment and is extending an upswing from earlier this month.
Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. When you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to envision out the economic calendar and stay updated on every day fundamental news!
BTC/USD, which turned higher from its $53,500 lows, is now closer to the $64,500 psychological level.
How high can BTC/USD fly before it encounters sustained selling pressure?
We’re eyeing the $66,000 – $68,000 range, which lines up with the highest of a descending channel pattern that’s been in play since March. The R1 ($66,500) Pivot Point resistance can be near that psychological level and will trigger a possible bearish move.
Look out for bearish candlesticks around $66,000, which could kickstart a downswing back toward the $58,000 – $60,000 area of interest.
There’s also a likelihood bitcoin faces selling pressure at its current price, which is true on the every day chart’s 200 SMA and late August resistance.
But when BTC/USD keeps drawing in buying pressure, a retest and consistent trading above $68,000 isn’t off the table.
In that case, bitcoin could push higher and make a run for the $70,000 previous highs.
What do you’re thinking that? Where do you see BTC/USD heading in the subsequent few days?