As the uptrend continues, the pair will likely pull back and retest the support at 23,000 and then resume the uptrend.
- Sell the BTC/USD pair and set a profit at 22,500.
- Add a stop-loss at 24,500.
- Deadline: 1 day.
- Set a buy-stop at 25,000 and set a take-profit at 26,000.
- Add a stop-loss at 23,000.
BTC/USD price continued to rise as the bullish momentum continued. Bitcoin broke through the important resistance level of $24,000, which was the highest level since June 13 of this year. It is up more than 35% from its June low.
Smoother nourished action
Bitcoin and stocks have been on a strong uptrend in recent days as investors ponder Federal Reserve actions. Last week, most analysts predicted that the Federal Reserve would raise interest rates by 100 basis points after the strong inflation data.
Now, most analysts expect the bank to be less aggressive than that. They expect him to raise interest rates by 75 basis points as he continues to fight soaring inflation.
Bitcoin is also up as investors bet contagion fears that existed a few weeks ago have subsided. It was feared that the collapse of platforms like Terra, Vauld, Celsius, Voyager Digital and Three Arrow Capital could lead to strong contagion in the industry.
Many analysts have compared it to the collapse of Lehman Brothers and its impact on the financial industry. However, most of the biggest companies in the industry like Coinbase, FTX, and Binance did well during the crash. Additionally, many BTC holders like Tesla and MicroStrategy continued to hold their assets.
Ethereum is another reason why the BTC/USD pair has rallied. Ether has surged strongly in recent days as investors anticipate the upcoming merger that will combine the current version with the Beacon Chain. Indeed, ETH/USD has jumped more than 80% since its low this year.
Ethereum’s performance is remarkable due to the close correlation between cryptocurrencies. In most time frames, cryptocurrency prices tend to move in sync with each other.
The four-hour chart shows that the BTC/USD pair has been on a strong bullish trend over the past few weeks. This week, the pair managed to break above the important resistance level at 22,610, which was the highest point since July 8 of this year.
Bitcoin also remains above the 25- and 50-day moving averages while the Relative Strength Index (RSI) edged closer to the overbought level. Therefore, as the uptrend continues, the pair will likely pull back and retest the support at 23,000 and then resume the uptrend.
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