Risk-off and anti-USD sentiment contribute to Bitcoin’s gains against the US dollar!
How high will BTC/USD go before the native cryptocurrency returns to its long-term bearish trend?
If the downtrend is rising, it is possible to do so at these levels:
Bitcoin (BTC/USD) Daily Chart by TradingView
Unless you’re too busy following the 2024 Emmy winners, you should know that the Federal Reserve recently cut interest rates by 50 basis points, slightly more than the 25 basis point cut that markets were pricing in weeks ago.
FOMC members have also hinted at future rate cuts this year and next, which is likely why the US dollar has struggled against its “riskier” peers.
Speaking of “risks,” Bitcoin — one of the riskiest major assets — is benefiting from improved market sentiment and extending a rally that began earlier this month.
Remember that directional biases and volatility in market prices are usually driven by fundamental factors. If you haven’t done your homework on Bitcoin and the US Dollar yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
BTC/USD, which has rallied from lows of $53,500, is now closer to the psychological level of $64,500.
How high can BTC/USD go before it faces sustained selling pressure?
We are targeting the $66,000-$68,000 range, which is in line with the top of the descending channel pattern that has been in place since March. The R1 pivot point resistance ($66,500) is also close to this psychological level and could lead to a potential downside move.
Watch out for bearish candles around the $66,000 level, which could lead to a fresh decline towards the $58,000-$60,000 area of interest.
There is also a chance that Bitcoin could face selling pressure at its current price, which is right at the 200 SMA on the daily chart and late August resistance.
But if the BTC/USD pair continues to come under buying pressure, a retest and sustained trading above the $68,000 level is possible.
In this case, the price of Bitcoin may rise and try to reach its previous high of $70,000.
What do you think? Where is BTC/USD price heading in the next few days?