BTC/USD – The Pair May Retreat Slightly And Then Resume The Bullish Trend

Short Position

  • Take Profit: 30,000
  • Stop Loss : 32,000
  • Timeline: 1 day

Long Position

  • Buy Stop : 31,000
  • Take Profit: 32,000
  • Stop Loss : 29,000

The failure of major crypto businesses was undoubtedly a difficult circumstance for all crypto spectators, however market views have recently altered dramatically. The SEC’s lawsuits against large cryptocurrency firms were also a source of concern for all crypto analysts. The primary causes for this rapid turn in mood include renowned companies’ crypto plans and initiatives, such as Blackrock’s iShares Bitcoin Trust filing and ETF filings by WisdomTree and Invesco. Not leaving out how Bitcoin benefited from the Fed’s decision to cease rate hikes in June.

The year-to-date gains of the BTC/USD pair have surpassed 90%, as the pair recently reached 31,341, the highest price this year. we can see that the BTC price hasn’t been this high in almost a year. For a few days, the pair has been moving in a strong bullish trend, as there is a general sense of optimism in the cryptocurrency industry. Investors are confident that the extended crypto winter has brought to a closure, since all cryptocurrency prices, including Bitcoin and altcoins, have risen significantly.

For technical analysts, the price charts have also been showing strong bullish signs for now. The pair initially overturned the double-top pattern by moving to the important resistance level of 31,091. The upward momentum has been solid over the last week, with the pair price remaining above the 25-day and 50-period moving averages. However, the RSI and the stochastic Oscillator have established a bearish divergence point. As a result, the pair may have a small retreat but the chances of the pair going back to the bullish trend is high. In such a scenario, the pair will very likely retest the 30,000 support level.