Risk-taking and anti-USD sentiment are extending bitcoin’s gains against the U.S. dollar!
How high will BTC/USD fly before the OG crypto goes back to its longer-term downtrend?
If the downtrend picks up, it could do so at these levels:
Bitcoin (BTC/USD): Daily
Bitcoin (BTC/USD) Daily Chart by TradingView
Unless you’ve been too busy binging on the 2024 Emmy Awards winners, you should know that the Fed recently cut its interest rates by 50 basis points, a bit higher than the 25-basis-point cut that the markets were thinking weeks ago.
FOMC members also hinted at future rate cuts this year and the next, which is probably why the U.S. dollar is struggling against its “riskier” counterparts.
Speaking of “risky,” bitcoin – one of the riskiest major assets out there – is taking advantage of improved market sentiment and is extending an upswing from earlier this month.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!BTC/USD, which turned higher from its $53,500 lows, is now closer to the $64,500 psychological level.
How high can BTC/USD fly before it encounters sustained selling pressure?
We’re eyeing the $66,000 – $68,000 range, which lines up with the top of a descending channel pattern that’s been in play since March. The R1 ($66,500) Pivot Point resistance is also near that psychological level and could trigger a potential bearish move.
Look out for bearish candlesticks around $66,000, which might kickstart a downswing back toward the $58,000 – $60,000 area of interest.
There’s also a chance bitcoin faces selling pressure at its current price, which is right at the daily chart’s 200 SMA and late August resistance.
But if BTC/USD keeps drawing in buying pressure, a retest and consistent trading above $68,000 isn’t off the table.
In that case, bitcoin could push higher and make a run for the $70,000 previous highs.
What do you think? Where do you see BTC/USD heading in the next few days?