The pair will likely hold steady on Monday as bulls target the key resistance at 50,000.
Set a buy-stop at 48,000 and a take-profit at 50,000.Add a stop-loss at 45,000.Timeline: 1-2 days.
Sell the BTC/USD pair and set a take-profit at 45,000.Add a stop-loss at 42,000.
The BTC/USD pair remained stubbornly above 45,000 as demand and enthusiasm for digital currencies has risen in the past few days. The pair rose to 47,800 during the weekend for the first time since March 2 this year. It has risen by over 30% from the lowest level this year.
Bullish Momentum Remains
The BTC/USD pair has been in a bullish momentum in the past few days even as concerns about the Federal Reserve remained. Investors are worried that the Fed will deliver about 6 more rate hikes this year. Some of these hikes will be 0.50%, which will make this year the most hawkish one in decades.
Bitcoin has risen despite the rising interest rates because the situation has been priced in for months. Besides, inflation in the United States has been in a strong upward trend in the past few months and the situation is expected to worsen in the coming months because of the ongoing crisis in Ukraine.
Another catalyst for BTC is that many people in Russia are using the coin as a means of exchange. For one, most of the country’s banks have been banned from the SWIFT network. This means that they can not move money to and from Russia.
Further, private companies have decided to exclude Russia from their networks. This means that Russians abroad cannot send money home through companies like Western Union, MoneyGram, and Wise. As a result, they are mostly using Bitcoin to handle these transactions.
Another catalyst for the BTC/USD pair is that there are signs that Russia’s government will become more open to Bitcoin in the coming months. Last week, there was talk that the government will allow friendly countries to purchase natural gas using Bitcoin.
The BTC/USD pair has been in a strong bullish trend in the past few days because of the catalysts mentioned above. It has moved above the 25-day and 50-day moving averages (MA). It has moved above the important resistance level at 45,000. Most importantly, it has risen above the descending trendline shown in black.
Oscillators like the Relative Strength Index and MACD have been a bit bullish as well. Therefore, the pair will likely hold steady on Monday as bulls target the key resistance at 50,000. It will remain in a bullish trend as long as it is above the moving averages.