Image Source: Pexels

Bullish view

• Buy the BTC/USD pair and set a take-profit 95,000.
• Add a stop-loss at 89,000.
• Timeline: 1-2 days.

Bearish view

• Sell the BTC/USD pair and set a take-profit at 89,000.
• Add a stop-loss at 95,000.

(Click on image to enlarge)

Bitcoin price held steady above the key support level at $90,000 as traders waited for major events this week. The BTC/USD pair rose to 92,000, much higher than the November low of 80,400.

Bitcoin price will have several key catalysts this week. The most important one is the upcoming markup of the CLARITY Act in the Senate. A mark up is a situation where a bill is debated and revised in a committee before it goes to the Senate for a full vote.

The CLARITY Act was the second most important legislation passed by Washington after the GENIUS Act, which focused on stablecoins. It seeks to clarify the duties of the SEC and CFTC when it comes to regulating the cryptocurrency industry.

The other catalyst for the BTC/USD pair will be the upcoming US Consumer Price Index (CPI) data, which will come out on Tuesday. Economists expect the data to show that the headline CPI rose to 2.7% and the core CPI moved to 2.6%.

The US will also release the latest retail sales and Producer Price Index (PPI) data on Wednesday. Economists expect the data to show that retail sales moved from 3.5% in November to 3.0% in December, while the headline PPI moved from 2.8% to 2.6%.

BTC/USD Technical Analysis

The daily chart shows that Bitcoin price dropped to a low of $80,465 on November 21 as crypto prices continued their downward trend.

It then rebounded to the current 91,800, which is slightly above the 25-day Exponential Moving Average (EMA).

The BTC/USD pair has formed two unique patterns, which are highly bullish. It formed an ascending triangle pattern, a common bullish continuation pattern.

Bitcoin has also formed a cup-and-handle pattern whose upper side is at $94,895 and is now forming the handle section.

It has moved above the strong,.pivot, reverse point of the Murrey Math Lines tool. Therefore, the pair will likely continue rising, with the initial target being at $94,895. A move above that level will point to more gains, potentially to the Major S/R pivot point level at 100,000.

More By This Author:

GBP/USD Forex Signal: Slips Below Key Support Ahead Of Key Macro Data
BTC/USD Forex Signal: Bitcoin Remains Under Pressure After Hitting Key Resistance
BTC/USD Forex Signal: Stalls At A Key Resistance Level