Technical analysis suggests buying BTCUSD with potential growth to the level of 69,500 within correction

14 May 2024 114
Technical analysis suggests buying BTCUSD with potential growth to the level of 69,500 within correction

BTCUSD is showing moderate gains on Tuesday after a 4% decline last week. Bitcoin has already recovered after falling below the $60,000 mark. The altcoin season will start this summer, and the bullish market expected after the next rise of the major cryptocurrency could last until 2025.


Bitcoin experienced a notable rise in value following the historic approval of exchange-traded funds (ETFs) in the US. However, it lost its upward momentum after falling below the record high of $73,776 reached in mid-March this year. The excitement around ETFs has died down, which is holding back further gains in value.


Despite this, there are signs of potential improvement this week. Investments in traditional bitcoin-based financial products (TradFi) have been recorded for three consecutive days. However, it may take time for the digital currency to reach its all-time high again, and the outcome will depend on further action from the US Federal Reserve (Fed).


Investors will closely watch the key US economic data this week. The US Producer Price Index (PPI) for April is due on Tuesday, along with Fed Chair Jerome Powell's speech. The attention will shift to the US Consumer Price Index (CPI), due on Wednesday. These reports could offer insights into the timing of the Fed's initial rate adjustment.


On the technical level, the BTCUSD rate is forming a broad downward correction on the D1 timeframe.

The price, being in the middle of the channel, shows signs of movement towards the trend resistance within the same channel. Convergence of the Relative Strength Index (RSI) indicator on the H6 timeframe shows potential growth in the value of the main digital currency.



Short-term prospects for BTCUSD suggest buying

The target is at the level of 69,500.

Part of the profit should be taken near the level of 65,500.

A stop-loss could be placed at the level of 58,000.

The bullish trend is short-term, so trade volume should not exceed 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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