BTC/USD Forex Signal: Bitcoin Nears Key Resistance – DailyForex.com
The pair will likely break out higher as investors target the next key resistance at 44,000.
Buy the BTC/USD and add a take-profit at 44,000.
Add a stop-loss at 37,000.
Timeline: 1-2 days.
Set a sell-stop at 36,500 and a take-profit at 33,000.
Add a stop-loss at 41,000.
The BTC/USD price is hovering near the important resistance at 40,000 after a series of good news about digital currencies. Bitcoin is trading at $39,735, which is substantially higher than last week’s low of less than $30,000.
Bitcoin price holds steady
The BTC/USD crashed below 30,000 last week as investors reacted to the latest Delta virus wave in most countries. This trend was short-lived as the pair managed to bounce back following some positive developments.
For one, the B-Word conference happened and featured some of the most prominent people in the industry. In it, Elon Musk confirmed that Tesla would reconsider accepting Bitcoin once miners deal with emissions. He also confirmed that he was long Bitcoin and that SpaceX had bought the coins.
The Bitcoin price rally was then supercharged after Amazon announced that it was hiring a new blockchain and cryptocurrency lead. This provided further evidence that the company would consider accepting the currency as a payment option. In a statement this week, the firm denied rumours that it was considering accepting the coins by the end of the year.
The BTC/USD is also reacting to news that PayPal is getting more into the industry. In a statement after it published its quarterly results, the firm said that it was building a crypto super app that will come out soon. This is notable since PayPal is one of the biggest companies in the world with more than 300 million users.
Meanwhile, the BTC/USD is rising due to the overall weaker US dollar. The US Dollar Index retreated slightly during the American session as investors reacted to the latest Fed decision. In it, the bank left its key tool unchanged and hinted that it will not hike any time soon, which is a good thing for Bitcoin and other cryptocurrencies.
BTC/USD Technical Analysis
The four-hour chart shows that the BTC/USD was previously forming a falling wedge pattern. In price action analysis, this pattern is usually a bullish sign. The coin managed to have a bullish breakout on July 24. The upward trend is being supported by the 25-day and 50-day moving averages, which is a bullish sign. It is also slightly below the important resistance at $41,282, which was the highest level on June 15. Therefore, the pair will likely break out higher as investors target the next key resistance at 44,000.
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