BTC/USD – A Bullish Breakout Can Be Expected for the Pair

My FX List
February 28, 2023
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A Bullish Breakout Can Be Expected for the Pair

Short Position

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

Long Position

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

The Bitcoin market experienced a dramatic trend reversal as it fell from its peak price of 25,266 last week to 22,523, which is the lowest price since February 15th. The pair has been showing a sluggish but consistent bullish trend on daily charts for the previous few weeks. Yet, a double top pattern that the price has recently formed is sending out bearish signs. However the appearance of a golden cross on the 200-day and 50-day moving averages is another positive indication for the pair. The RSI has been drifting lower for some time. The BTC/USD pair is expected to decline further based on technical analysis, with a slump benefiting sellers.

Speaking of fundamentals, all assets, including Bitcoin, are impacted by the Federal Reserve’s monetary policy. The data released last Friday shows that the US PCE is at a high level. The recent robust consumer inflation report painted a clear image of the American economy at a time when everyone is looking to the Fed for their next steps in combating inflation. The strong USD will be pushing the pair lower, which also suggests that the BTC market may be in for a bearish phase.

 

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