BTC/USD –  The Possibility of a Bullish Breakout is There for the Pair

55forexbrokers 55forexbrokers
April 7, 2023
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Table of Contents

Bullish View

Take profit: 30,000
Stop loss: 27,500
Timeline: 1 day

Bearish View

Sell Stop: 27,600
Take Profit: 26,000
Stop Loss: 28,800

The pair was quite stuck in a tight range during the week as all were keeping their eyes on the upcoming policies of the Federal Reserve. During the overnight session we noted some price action taking place which was influenced by the American stock market movements. The S&P index had dropped by 36 basis points and the Dow Jones index recorded a gain of 65 points.

So, the BTC pair kept moving sideways throughout the session. Another event that influenced the pair was the hawkish statement from the head of Cleveland Fed as she declared her support for further rate hikes as she believes the banking crisis is no longer a threat. Traders should take some hints from the NFP data release as Fed’s actions will be in accordance with the statistics.

For technical analysis, we did see a downward trend going on for the volume and MACD shifted to the neutral point. We noted a consolidation taking place at the 25-period and 50-period MAs. As the pair looks to have found a key resistance point at 28,895. We can also see the formation of an ascending triangle pattern on the price charts. So, the possibility of a bullish breakout is there for the pair until and unless the bullish view gets invalidated by a break below the ascending trendline. 

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Author 55forexbrokers