Latest News

BTC/USD Forex Signal: All Signs Point to a Strong Bullish Breakout – 07 November 2022

Bitcoin has been in a consolidation phase in the past few days as the market digests the most recent interest rate decision.

Advertisement

Bullish view

Buy the BTC/USD pair and set a take-profit at 22,000.Add a stop-loss at 20,000.Timeline: 1-2 days.

Bearish view

Set a sell-stop at 20,800 and a take-profit at 19,000.Add a stop-loss at 21,500.

The BTC/USD price continued consolidating on Monday morning as investors waited for the next catalyst. It was trading at 21,200, where it has been in the past few days. This price is about 17% above the lowest level in October.

Calm before the storm?

Bitcoin has been in a consolidation phase in the past few days as the market digests the most recent interest rate decision. The Fed decided to continue hiking interest rates in a bid to fight the soaring consumer and producer inflation.

In his press conference, Jerome Powell said that the bank will likely continue hiking interest rates albeit at a slower pace. As such, analysts expect that the bank will hike rates by 0.50% in December and push them to past 5% in the first quarter of the month.

American stocks continued their upward trend on Friday after the latest American jobs data. The Dow Jones rose by 400 points while the S&P 500 and Nasdaq 100 indices rose by more than 1%. Historically, Bitcoin has a positive correlation with these indices.

Meanwhile, the BTC/USD price reacted to the latest Coinbase earnings. The company, which is the second-biggest crypto exchange in the world, said that its revenue dropped to $590 million in the third quarter, lower than the median estimate of $654 million. This decline was a 50% drop from the same quarter in 2021.

Coinbase also said that its user base has been falling recently. It had 8.5 million monthly active users compared to the previous 9.2 million. Still, the figure was better than the median estimate of 7.84 million.

The next key catalyst for Bitcoin will come on Thursday, when the US will publish the latest consumer inflation data. A highr number will signal that the Fed will continue hiking in the near term.

BTC/USD forecast

The BTC/USD pair made a strong recovery in October. In the past two weeks, it has remained above the 20,000 level in the past two weeks straight. The pair remains above the important resistance level at 21,093, which was the highest level on 29th October. It has remained above the 50-day moving average and slightly below the first resistance of the standard pivot point at 21,420.

Therefore, the BTC/USD pair will likely have a bullish breakout as buyers target the key resistance at 22,000.

Ready to trade our free Bitcoin trading signals? We’ve made a list of the best Forex crypto brokers worth trading with.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *