Bitcoin price triggers relief rally to $42,000
|- Bitcoin price sees an underpinning floor built at $38,000.
- BTC price sees RSI ticking higher, pointing to bullish momentum.
- Expect a rally above $42,000 towards $44,000 against the monthly R1.
Bitcoin (BTC) price is set for a change of mindset after the bearish moves that resulted in a downtrend since April. BTC price is now being underpinned at around $38,000. A lift in the Relative Strength Index (RSI) shows that investors are back with risk appetite on their minds. Expect to see a 15% jump in BTC price towards $44,000 after the FED rate decision this evening.
Bitcoin price set to jump 15% in the FED aftermath
Bitcoin price sees bulls returning to the scene as the RSI is nudging higher, showing the demand side volume picking up steam, outweighing the sell-side. WIth that rebalancing, BTC price is trading further away from $38,000, a level that got underpinned after bulls defended it at the beginning of this month and at the end of April. That, together with the RSI on the low end, made bears book profit and could see them fade away for some time.
BTC price is thus in an area where there is room to move further higher, given the lack of significant bearish volume. As bulls will be able to run prices higher, expect first to see BTC price try and hit $42,000 around that dashed blue line that coincides with the 55-day Simple Moving Average (SMA). It would be perfect for a test, or re-entry for a long, and could see the price swing up to $44,088.73, a historic pivot that coincides with this month's monthly R1 resistance level.
BTC/USD daily chart
Risk sentiment could still change as investors see a struggling earning season unfolding for US equities. With still some big corporations due to report earnings, a drop in global markets could easily be triggered before or after the closing bell, erasing all profits intraday and dragging price action to the downside. BTC price could fall back to $36,709.19, and if it breaches that, a nosedive move will likely happen to $32,649.28.
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