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The pair bounced back and crossed the key resistance point at 27,010, the lowest level on April 24th. It has jumped above the 25-period and 50-period moving averages.
- Buy the BTC/USD pair and set a take-profit at 28,400.
- Add a stop-loss at 26,000.
- Timeline: 1 day.
- Set a sell-stop at 27,200 and a take-profit at 26,000.
- Add a stop-loss at 29,000.
The BTC/USD pair rebounded as the recent sell-off took a breather. Bitcoin jumped to a high of $27,670, the highest point since May 10. It has risen by more than 6.50% from the lowest point during the weekend.
The BTC/USD pair jumped after some bullish statements from Paul Tudor Jones, one of the top Wall Street legends. In an interview with CNBC, he predicted that the Federal Reserve has finished hiking interest rates.
He cited the fact that inflation has dropped in the past few months straight for the first time in years. Data published last week showed that the country’s inflation dropped to 4.9% in April while core inflation fell to 5.4%.
Therefore, he predicted that American stocks will end the year higher than where they are today. If this forecast is accurate, there is a likelihood that cryptocurrencies like Bitcoin will also bounce back in the coming days.
The BTC/USD pair also jumped as the US dollar index retreated. The dollar declined to a low of $102.25 from last week’s high of $102.50. Bitcoin has an inverse relationship with the dollar index.
Bitcoin also jumped because of the positive macroeconomic events from the United States. Regional bank stocks like PacWest and Comerica jumped sharply on Monday. At the same time, there is a likelihood that the US will avoid a debt limit crisis since Joe Biden and Speaker McCarthy will meet on Tuesday.
Bitcoin plunged to a low of $25,780 during the weekend. It was the lowest level since March. The pair bounced back and crossed the key resistance point at 27,010, the lowest level on April 24th. It has jumped above the 25-period and 50-period moving averages.
Oscillators have also bounced back while the Relative Strength Index (RSI) has moved above the neutral point of 50. The Stochastic Oscillator has moved above the overbought level. Also, the pair retested the resistance level at 27,650 (May 1 low).
Therefore, the pair will likely continue rising as buyers target the next key resistance point at 28,350. A move above this level will see it rise to the key point at 29,000.
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