Economists expect the central bank to keep interest rates unchanged as inflation eases.
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- Buy the BTC/USD pair and take profit at 37,000.
- Add a stop loss at 34,500.
- Schedule: 1-2 days.
- Set the sell stop at 35,000 and the take profit at 34,000.
- Add a stop loss at 36,000.
Bitcoin prices were flat on Wednesday despite a rally in the US dollar index (DXY). The BTC/USD pair was trading at 35,370, close to its year-to-date high of 36,000. It’s up more than 33% from its October low.
The U.S. dollar index rose in overnight trading as U.S. Treasury yields retreated. The index tracking the U.S. dollar against a basket of currencies rose to $105.60. At the same time, yields on 10-year and 30-year bonds fell to 4.56% and 4.7%. The five-year bond yield fell to 4.57%.
As US stocks continued to rise, Bitcoin also performed well. The Dow Jones Index rose 62 points, while the Nasdaq 100 and S&P 500 rose 20 and 150 points. These indexes are in the longest bull run since 2021.
There are several reasons why Bitcoin is doing well. First, there are growing expectations that the US Federal Reserve has finished raising interest rates. The Fed decided last week to keep interest rates unchanged at between 5.25% and 5.50%.
Economists expect the central bank to keep interest rates unchanged as inflation eases. The Fed chairman, the head of the Fed, is expected to issue a statement later Wednesday.
Second, there are signs that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF in the coming months. Companies such as BlackRock, Frederick Templeton, and Ark Invest have filed for Spot Bitcoin ETFs.
Additionally, Bitcoin is performing well, partly due to the halving scheduled for late April. Historically, Bitcoin tends to perform well ahead of halving events. If you halve, your Bitcoin reward will be halved.
Meanwhile, Bitcoin miners sold more Bitcoins than they mined in October, according to a Bloomberg analysis. They sold these coins to profit from the rise in BTC price.
The BTC/USD pair has been trading within a narrow range for the past few weeks. It consolidated at 35,000, a key resistance point. The pair is trading above his 50-period moving average and the Relative Strength Index (RSI) is trending upward.
Additionally, this pair has formed a bullish pennant pattern, which is shown in yellow. Volume has been trending upward over the past few days. Therefore, a bullish breakout to 37,000 is likely as the pennants approach the confluence.
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