BTC/USD Forex Signal: Rebound to 25,000 Can’t be Ruled Out – 13 September 2022
Bitcoin and other cryptocurrency prices rebounded in the overnight session as investors focused on the upcoming Ethereum merge.
Buy the BTC/USD pair and set a take-profit at 24,000.Add a stop-loss at 20,500.Timeline: 1 day.
Set a sell-stop at 21,000 and a take-profit at 19,000.Add a stop-loss at 24,000.
The BTC/USD price continued recovering as investors focused on the upcoming Ethereum merge and US inflation data. It rose to a high of 22,500, which was the highest level since August 19th. It has also risen by more than 22% from the lowest level last week.
Bitcoin and other cryptocurrency prices rebounded in the overnight session as investors focused on the upcoming Ethereum merge. This merge, which is the biggest event in the blockchain industry, will see the platform move from a proof-of-work (PoW) to a proof-of-stake (PoS) platform.
By becoming a PoS platform, it will embrace a technology that has been used by many fast-growing blockchains like Avalanche, Cronos, and Cardano. It will also set the stage for more future upgrades such as sharding.
Historically, cryptocurrencies have a close correlation with each other. As such, they tend to perform in sync when there is a major event. For example, most cryptocurrencies performed well in 2021 ahead of Bitcoin’s halving event.
The BTC/USD pair also retreated because of the relatively weaker US dollar. The closely watched US dollar index dropped from last week’s high of $110.5 to the current $108.12. It has dropped as investors lower their inflation outlook for the American economy.
Economists expect that the data set to be published on Tuesday will show that the headline consumer price index (CPI) dropped from 8.5% in July to 8.1% in August. There is a likelihood that inflation fell much lower due to the strong US dollar and the lower oil prices.
As such, if inflation keeps falling, there is a likelihood that the Federal Reserve will slow its interest rate hikes in the coming months.
This view explains why the US dollar has fallen while American stocks have staged a strong rally. The Dow Jones rose by 200 points while the Nasdaq 100 jumped by 140 points.
The four-hour chart shows that the BTC/USD pair has been in a strong bullish trend in the past few days. As it rose, it managed to move above the important psychological level at 20,000. It also rose above the important resistance level at 21,952, which was the highest level on August 24.
The pair moved above the 25-day and 50-day moving averages. Therefore, the pair will likely continue rising as bulls target the next key resistance level at 24,000.
Ready to trade our daily trading signals? Here’s a list of some of the best Forex trading platforms to check out.