BTCUSD declined moderately on Tuesday amid a stronger dollar, but the cryptocurrency maintains its upward trend and trades near the level of $63,000. Earlier, Bitcoin reached the $65,000 level for the first time in three weeks, helped by growing interest in specialized U.S. exchange-traded funds. This happened amid signs that the Federal Reserve is set to loosen monetary policy.
The cryptocurrency advanced 7.4% last week, the sharpest increase for such a period since mid-July. Fed Chair Jerome Powell on Friday gave the clearest indication yet that the central bank is on course to cut benchmark rates from a more than two-decade high. This creates a favorable liquidity backdrop for global markets.
Powell’s signal spurred a $252 million net inflow — the highest in more than a month — into a group of US Bitcoin ETFs. The funds have attracted inflows for seven straight days.
The main driver of growth continues to be the expectation of a rate cut by the US Federal Reserve. According to CME FedWatch Tool, there is a 70% chance of a 25 basis-point cut in September, and about a 30% chance of a larger 50 basis-point cut.
Technical analysis of BTCUSD price shows the formation of a broad downward correction on the daily timeframe (D1). The price, having pulled back from the trend support, demonstrates the strength of the current range and heads towards the resistance level. The Moving Average of Oscillator (with parameters 12, 26, 9) is in the positive zone. This could strengthen the bullish sentiment.
The short-term outlook for BTCUSD is to buy with the target at the level of 72,050.00. Part of the profit could be fixed near the level of 67,150.00. The Stop loss can be placed at 56,015.00.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
