BTC/USD – The Bitcoin Pair May Experience a Relief Rally Despite the Risks.

My FX List
May 9, 2023
forex signal

Short Position

Sell Stop: 26,900
Take Profit: 25,000
Stop Loss: 29,000
Timeline: 1- 2 days

Long Position

Buy stop: 28,200
Take profit: 30,000
Stop loss: 26,000

The Bitcoin pair fell to its lowest point since April 25 as a result of uncertainties over the cryptocurrency industry. It reached a price of 27,200, which was more than 11% below the pair’s highest price. This shows that the BTC market may have temporarily entered a correction zone. Congestion that has led to a dramatic increase in transaction fees for major cryptos like Bitcoin and Ethereum is one of the key challenges currently affecting the cryptocurrency market. A popular exchange even temporarily stopped BTC withdrawals in order to deal with the problem, which has now been restarted. Fundamentally speaking, the meeting between Biden and McCarthy will have an impact on the market and the BTC/USD pair also has the release of US inflation data to look forward to.

The Liechtenstein government also declared its intention to accept Bitcoin as payment for public services and even to invest its own funds in cryptocurrencies. Although the banking crisis had indirectly helped Bitcoin, the situation is now improving and the banking sector is stabilising which somehow pushed BTC to a lower price level. The pair appears to be headed towards its lowest point on April 24, which is also the crucial support level at 26,950, as seen on the charts, which have only shown a bearish trend for the past few days. The 25-day and 50-day EMAs have been crossed by the pair as it moved below them, and the Relative Strength Index for the pair has also moved below the oversold level . The pair is likely to have a relief rally if the congestion concerns subside, which would result in a retest of the crucial support level at $29,000. However, keep an eye out for a drop below 26,950, as it would indicate that the pair might continue to decline to the next psychological level at 25,000.

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