Bullish view

• Buy the BTC/USD pair and set a take-profit at 73,800.
• Add a stop-loss at 69,000.
• Timeline: 1-2 days.

Bearish view

• Set a sell-stop at 69,500 and a take-profit at 68,000.
• Add a stop-loss at 71,500.

(Click on image to enlarge)

Bitcoin price has held relatively steady this week as traders waited for the next catalyst and as the US dollar retreated. The BTC/USD pair was trading at 70,300 on Wednesday, higher than last week’s low of 66,500.

US dollar has retreated

Bitcoin price rose as the US dollar index, which measures the strength of the greenback against a basket of currencies, dropped to $104 this week. This drop happened as the price of crude oil crashed to its lowest level in over four months.

Lower oil prices mean that inflation could continue dropping, triggering a rate cut by the Federal Reserve. This is a possible scenario since the recent economic numbers showed that the economy was slowing.

Data by the ISM showed that the manufacturing PMI tumbled below 50 for the first time in two months. Other numbers like retail sales, manufacturing production, and industrial output have confirmed that the economy was slowing.

Bitcoin does well when central banks, especially the Federal Reserve, are slashing interest rates. The Bank of Canada (BoC) is expected to start cutting rates later on Wednesday while the European Central Bank will deliver its first cut on Thursday.

Bitcoin also steadied after Mike Novogratz of Galaxy Digital argued that the coin could surge to $100,000 by the end of the year. This price action will be confirmed if the price cruises above the all-time high of $73,800.

He argues that there is still strong demand for Bitcoin, especially among institutional investors following the spot ETF approvals earlier this year. Investors have allocated billions in the coin. The SEC has also approved spot Ethereum ETFs, which is a positive move for cryptocurrencies. On top of this, Bitcoin supplies are drying up after the halving event in April.

BTC/USD technical analysis

The 4H chart shows that the BTC/USD pair bottomed at 66,268 last week. It has now rebounded above the first resistance of the Woodie pivot point. The coin has also moved above the 50-period and 25-period Exponential Moving Averages (EMA).

It is also approaching last week’s high of over 72,000. Also, it has moved above the Ichimoku cloud and formed what looks like a rounded bottom. Therefore, the pair’s outlook is bullish, with the next point to watch being at 72,000. A break above that level will open the possibility of it soaring to its all-time high of 73,800.

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