Bullish view
Buy the BTC/USD pair and set a take-profit at 90,000.
Add a stop-loss at 82,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 82,000.
Add a stop-loss at 90,000.
Bitcoin remained inside a tight range on Tuesday morning as US government bond yields continued to rise. The BTC/USD pair was trading at 85,747, a few points below last month’s high of 87,310.
Bitcoin’s weakness is mostly because of the bond market. Data shows that the ten-year yield jumped to 5.3%, while the five-year and 30-year yields jumped to 5.05% and 5.6%, respectively. These yields have been in an upward trend this year as the turmoil in the bond market accelerated.
Top Regulated Brokers
Bitcoin, like gold, is a non-yielding asset, and investors tend to avoid it when bond yields are in an upward trend. These yields have jumped because of the rising US public debt and the recent Federal Reserve interest rate decision.
Despite all this, there are signs that Bitcoin is attracting demand from US institutional and retail investors. Spot Bitcoin ETFs have added over $292 million in assets this month, continuing an upward trend that started in July when they added $172 million. They have had over $6.5 billion in assets in this period.
Another potential catalyst for Bitcoin is the fact that the Fed may decide to leave interest rates unchanged this month. This view is based on last week’s macro data, which showed that the headline and core inflation metrics were softer than expected. The US economy also created fewer jobs than expected as the unemployment rate rose to 4.2%.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has rebounded from a low of 57,664 in July to a high of 87,310. It has jumped above the important resistance level of 82,758, its highest level in May this year. The pair then retested that level late last month, confirming a break-and-retest pattern.
Bitcoin has held steady above the 50-day Exponential Moving Average (EMA). It has remained above the Supertrend indicator, a sign that bulls are in control. Therefore, the pair will likely continue rising, potentially to the key resistance level of 90,000. A move to that level will be confirmed if it moves above the resistance level of 87,309. A drop below the support level of 84,000 will invalidate the bullish outlook.
Ready to trade our free daily Forex trading signals? We’ve shortlisted the best MT4 crypto brokers in the industry for you.