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BTC/USD Forex Signal: The path of the price of bitcoin to $50,000 is now clear


The BTC/USD pair has been in a strong uptrend in the past few months. 

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  • Buy the BTC/USD pair and set a take-profit at 46,000.
  • Add a stop-loss at 42,000.
  • Timeline: 1-2 days.
  • Set a sell-stop at 42,000 and a take-profit at 40,000.
  • Add a stop-loss at 44,000.

Bitcoin price continued its strong recovery as the recent surge accelerated. The BTC/USD price has risen in the past eight straight weeks and is now trading at its highest point since April 2022. It has become the best-performing asset as it jumped by over 183% from its lowest point this year.

Bitcoin continued its strong rally as the hype in the crypto industry continued. The fear and greed index rose to the greed zone of 79, signaling that investors are getting greedy in the market. In most cases, BTC tends to do well when there is a greed sentiment.

Bitcoin has risen for several reasons. First, there is growing hopes that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF in the coming weeks or months. Several large companies, including Blackrock, Franklin Templeton, and Invesco have filed for ETFs.

These companies are notable because of their history and performance in the financial market. Blackrock is the biggest asset management in the world with over $9 trillion in assets. Franklin Templeton and Invesco also have over $1.5 trillion and $1.52 trillion in assets, respectively.

They also have a long track record of running ETFs. For example, Blackrock runs hundreds of ETFs, including the iShares Core S&P 500 fund that has over $380 billion in assets. Therefore, an approval will likely lead to more Bitcoin demand in the coming months.

Bitcoin has also rallied because of the rising hope that the Federal Reserve is done hiking interest rates. The bank has hiked rates from zero in 2022 to a two-decade high of 5.50%. Now, with inflation falling, there is a likelihood that the bank will cut rates in the next few months. Inflation has dropped in most countries, including in the euro area and Switzerland.

The BTC/USD pair has been in a strong uptrend in the past few months. It has jumped in the past five straight days and moved above all moving averages. The pair’s Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the overbought levels. Also, the Average Directional Index (ADX) remains above 40.

Therefore, the outlook for the pair will continue as buyers target the key resistance level at 46,000. If this happens, the BTC/USD price will hit the key resistance point at 50,000.

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Sources


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