The pair will likely have a bullish breakout in the near term.
Buy the BTC/USD pair and set a take-profit at 26,000.Add a stop-loss at 23,500.Timeline: 1-2 days.
Set a sell-stop at 23,500 and a take-profit at 22,000.Add a stop-loss at 25,500.
The BTC/USD price moved sideways and remained above the important support at $24,000 as the recent rebound stalled. The pair was trading at 24,155 on Tuesday, which was lower than this week’s high of 25,200. It is also about 37% above the lowest level this year.
Bitcoin Recovery Stalls
The BTC/USD pair moved sideways as investors focused on the relatively strong US dollar. The dollar index rose by more than 0.80% in the overnight session and was trading at $106.33, which was the highest point in about two weeks. Bitcoin has an inverse relationship with the US dollar.
Further, the performance happened as investors saw the VIX index rise by more than 2.30%. This performance was mostly because of the ongoing weakness in China.
Data published by the country’s National Bureau of Statistics (NBS) showed that industrial production, fixed asset investments, and retail sales declined in July. As a result, the country’s central bank decided to cut two important interest rates.
The BTC/USD price also wavered in line with the performance of other cryptocurrencies. ETH moved back below $2,000 while the total market cap of all cryptocurrencies declined to $1.23 trillion.
The next key catalyst for Bitcoin will be the upcoming minutes of the Federal Open Market Committee (FOMC) that are scheduled for Wednesday. These minutes will provide more information on what happened in last month’s meeting.
Still, there is a high possibility that the bank will continue hiking interest rates in the coming months even as inflation pulls back.
The four-hour chart shows that the BTC price has been in a slow bullish trend since June this year. Since then, it has managed to move from a low of 17,600 to a high of 25,202. Along the way, the pair formed what looks like an ascending triangle pattern, which is usually a bullish sign. The triangle has now moved to its confluence level.
At the same time, it has moved above the 25-day and 50-day moving average. The Know Sure Thing (KST) indicator has moved above the neutral point. Therefore, because of the ascending triangle pattern and the strong performance of American equities, the pair will likely have a bullish breakout in the near term. If this happens, the next key reference level to watch will be at 26,000.
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