BTC/USD Forex Signal: Range-Bound with Bullish Bias - DailyForex.com
The pair will likely keep rising as bulls target the key resistance at 50,000.
Buy the BTC/USD pair and set a take-profit at 50,000.
Add a stop-loss at about 47,000.
Timeline: 1-2 days.
Sell the BTC/USD and add a take-profit at 46,000.
Add a stop-loss at 48,000.
The BTC/USD price tilted higher in the overnight session as cryptocurrency prices bounced back. The pair is trading at 48,677, which is above the key support level at about 45,401. Other cryptocurrencies like Ethereum, Ripple, and Solana also jumped.
Bitcoin Crawls Back
The BTC/USD pair rose slightly as demand for Bitcoin rose. The jump coincided with the overall rally of other assets like stocks and commodities. The Dow Jones jumped by more than 500 points while the price of crude oil jumped by more than 2%.
The jump happened as worries of the Omicron started to fade. Recently, most countries have been afraid of moving back to lockdowns. For example, the Biden administration announced measures to curb the illness that included the distribution of test kits.
The BTC/USD pair rose as the hash rate continued rising. According to BTC.com, the hash rate jumped to about 173 EH/s. This is slightly below the highest level on record. The difficulty of mining has also jumped in the past few days, signalling that there is a huge demand for the coins.
Still, Bitcoin remains about $20,000 below its all-time high. This performance is mostly because investors are afraid of the change of tone of key central banks.
For example, the Federal Reserve has hinted that it will hike interest rates three times in 2022 while the Bank of England (BOE) has already started tightening. Despite the Omicron variant, analysts expect that most central banks will embrace a more hawkish tone in the coming year.
Meanwhile, it seems like there is a strong demand for blockchain projects, which is a good thing for Bitcoin. For example, on Tuesday, a blockchain project known as Render announced that it had raised more than $30 million from investors. Blockchain projects have raised more than $25 billion from VCs this year.
The four-hour chart shows that the BTC/USD pair tilted higher in on Wednesday morning. Still, the pair is in the same range where it has been in the past few weeks. It has also formed a strong support at about 45,401. As you can see, the pair has struggled to move below that support level several times this month.
The pair is slightly above the 25-day moving average and is slightly above the Ichimoku cloud. Therefore, the pair will likely keep rising as bulls target the key resistance at 50,000.