Bullish view

• Buy the BTC/USD pair and set a take-profit at 65,000.
• Add a stop-loss at 60,000.
• Timeline: 1-2 days.

Bearish view

• Set a sell-stop at 62,000 and a take-profit at 60,000.
• Add a stop-loss at 65,000.

(Click on image to enlarge) 

Bitcoin held steady on Monday morning as last week’s momentum faded. The BTC/USD currency pair was trading at 63,000, higher than this month's low of 52,000.

Bitcoin, like other risky assets, welcomed the Federal Reserve’s decision to start cutting interest rates as it worked to engineer a soft landing for the economy.

Bitcoin bounced back, rising above $60,000 while American indices like the Dow Jones and Nasdaq 100 soared to their highest levels on record.

The US dollar retreated against most currencies while government bond yields continued falling. The 10-year bond yield retreated to 3.7% while the year dropped to 3.3%.

Analysts now expect that the Fed will cut interest rates in the next two meetings, especially if data shows that the labor market was softening. Recent data showed that the unemployment rate has remained above 4%  in the past two consecutive months.

Bitcoin also rose as signs showed that institutional investors were still upbeat about the coin. Data shows that spot Bitcoin ETFs had net inflows of over $92 million on Friday and $396 million in the last five days. Blackrock’s IBIT fund has the most inflows at $20.9 billion and the company gained approval of a Bitcoin options fund.

The other big news was that MicroStrategy continued to accumulate Bitcoin after raising $2 billion in an oversubscribed fund. The company  now holds over 244k coins valued at $15.4 billion.

BTC/USD technical analysis

The BTC/USD pair bounced back after the relatively dovish Federal Reserve interest rate decision. It rose to a high of 64,100, its highest point since August 26.

The pair has lost the momentum a bit, likely because American stocks eased on Friday because of the triple-witching event where options worth over $5.1 trillion expired.

It remains slightly above the 50-day moving average and the Ichimoku cloud. Also, the MACD indicator has moved above the zero line while the Relative Strength Index is above 50.

Therefore, the BTC/USD pair will likely continue rising as bulls target the next key resistance level at 65,000. A move above that level will raise the chances of the pair moving to 70,000.

The alternative scenario is where the pair retreats and retests the psychological level at 60,000. This retreat would happen because stocks tend to drop a week after the triple witching event, which could affect Bitcoin.

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