BTC/USD Forex Signal: Eyes $106K Amid Recovery – 12 December 2024

Bullish view

-- Buy the BTC/USD pair and set a take-profit at 106,000.
-- Add a stop-loss at 97,000.
-- Timeline: 1-2 days.
Bearish view

-- Set a sell-stop at 99,000 and a take-profit at 95,000.
-- Add a stop-loss at 104,000.

The BTC/USD pair staged a strong recovery after consolidating in the past few days. It rose to 100,500, a big increase after it tumbled to 94,000 earlier this week. It has jumped by over 130% this year.

Bitcoin’s recovery coincided with the rebound in American equities as the Dow Jones, S&P 500, and Nasdaq 100 indices rose by over 0.20%. It also happened as US bond yields continued rising, with the 10-year rising to 4.25% and the 30-year moving to 4.45%.

This performance happened after the US published inflation numbers that were in line with expectations. The headline Consumer Price Index (CPI) rose from 2.6% to 2.7%, while the core CPI remained at 3.3%.

These numbers mean that the Federal Reserve may continue cutting interest rates in the upcoming meeting. Besides, the labor market has remained on edge, with the unemployment rate rising to 4.2% in November. Bitcoin and other cryptocurrencies thrive when the Fed is cutting interest rates.

The coins are reacting to the upcoming Donald Trump administration in the United States. Trump has pledged to make the US the crypto capital of the world by ensuring friendly regulations. He has already nominated Paul Atkins, who is well-regarded by the community to become the next SEC chair.

Bitcoin is also seeing strong demand from investors as the total cumulative ETF inflows rose to over $34.35 billion. The biggest funds are by companies like Blackrock, Grayscale, Fidelity, and Bitwise.

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BTC/USD technical analysis

The four-hour chart shows that the BTC/USD pair has moved sideways in the past few days. It has formed an ascending channel, which is made up of a series of higher highs and higher lows.

Bitcoin has moved slightly above the 50-period and 25-period moving averages. It has also risen above the Ichimoku cloud indicator, while the MACD and the Relative Strength Index (RSI) indicators have pointed upwards.

Therefore, the BTC/USD pair will likely continue rising as long as bulls push it above the resistance at 103,570. Such a move will point to more gains, with the next reference point to watch will be at 106,000. More downside will be confirmed if the pair drops below the lower side of the channel.

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Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.