By Crispus Nyaga
Reviewer Adam Lemon
Fact-checker DailyForex.com Team
Bearish view
- Sell the BTC/USD pair and set a take-profit at 90,500.
- Add a stop-loss at 105,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 105,000.
- Add a stop-loss at 90,500.
The BTC/USD pair remains in a tight range as many crypto investors remained in the sidelines waiting for the next catalyst. Bitcoin was trading at $95,250, down by about 12% from its highest level this year.
Bitcoin’s consolidation happened as a sense of fear remained in the market. The fear and greed index has moved from last year’s high of 88 to the fear zone of 36. Bitcoin does well when investors are greedy.
Crypto analysts are optimistic that Bitcoin will bounce back later this year. Anthony Scaramucci, the founder of Skybridge Capital, has predicted that the coin will eventually surge to $200,000 later this year.
In another note, Bernstein analysts predicted that the next leg of Bitcoin surge was just starting. The analysts cited the crypto taskforce by David Sacks that will propose setting a Bitcoin Reserve, the creation of a sovereign wealth fund, and increasing ETF inflows will help to supercharge Bitcoin prices.
The next likely catalyst for the Bitcoin price will be the upcoming Federal Reserve minutes on Wednesday. These minutes will provide more data on what to expect from the Fed in the coming meetings. Bitcoin does well when the Fed is having a dovish tilt.
BTC/USD technical analysis
The daily chart shows that the price of Bitcoin has continued to consolidate in the past few days. It has crashed from a high of 108,093 earlier this month to 96,000. This price action is a normal process in Bitcoin’s performance. Historically, the coin rises and then consolidates for a while and then resumes the uptrend.
Bitcoin has moved slightly below the 50-day moving average. The Percentage Price Oscilator (PPO) and the Relative Strength Index (RSI) have continued falling. Therefore, the BTC/USD pair will likely continue consolidating on Tuesday.
The key support and resistance levels to watch will be at 90,580 and 108,095. A drop below the support at 90,580 will point to more downwards. On the other hand, a strong bullish breakout will be confirmed if the coin rises above 108,093.
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