BTC/USD Forex Signal: Double-Top Pattern Forms

Bearish view Sell BTC / USD pair and set profit at 19,970. Add stop loss at 21,000. Timescale: 1-2 days. Bullish view Set buy stop at 20,800 and take profit at 21,500. Add stop loss at 19,000. BTC/USD remained in a consolidation phase after last week’s strong comeback. Bitcoin was at $20,653, down slightly from last week’s high of $21,000. It is still about 13.90 above this month’s low. Bitcoin Recovery Fades BTC/USD made a strong recovery last week as global sentiment improved. Its rising performance coincided with a sharp fall in the US dollar and a strong reaction from stocks. The US dollar rate fell from $115 to around $110. , US stocks, meanwhile, continued to rise, with the Dow Jones, SandP 500 and Nasdaq 100 up more than 2% on Friday. Stocks rose as U.S. companies reported mixed quarterly results. , According to FactSet, about 52% of all companies in the SandP 500 index have published their results. Of these companies, 71% reported a positive EPS surprise and 68% reported an earnings surprise. Combined revenue growth was 2.2%, the slowest growth since 2020. Tech giants like Meta Platforms, Amazon and Alphabet disappointed. BTC / USD rose after Elon Musk bought the giant social media Twitter. He bought the company for more than $ billion in cash. Investors believe his purchase is bullish for Bitcoin and Dogecoin, as Musk is bullish on Bitcoin. Bitcoin also rose as investors began to price in a situation where the Federal Reserve is about to change its monetary policy. The Fed is expected to raise interest rates by 0.75% this week and has signaled that it will begin to slow the rate of increases in the coming months. However, some analysts believe that investors are ahead of the Fed. In addition, inflation remains at a high level and the economy recovered in the third quarter. BTC/USD Forecast The price of BTC/USD made a strong recovery last week when it managed to break above the key resistance level of 21,000. The pair managed to break the key resistance levels of 20,000 as well as the 25-day and 50-day moving averages. It crossed the 25-day and 50-day moving averages. However, the pair has formed a double top pattern with a neckline at 19,968. A double top is usually a bearish sign, so it is likely that the pair will continue to decline as sellers target the next key support level at 19,500.

Steve Walker

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