The pair will likely have a bullish breakout to about 50,000 later today.
Bullish View
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Buy the BTC/USD pair and add a take-profit at 50,000.
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Add a stop-loss at 48,000.
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Timeline: 1 day.
Bearish View
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Set a sell-stop at 48,000 and a take-profit at 47,000.
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Add a stop-loss at 49,000.
The BTC/USD moved sideways on Thursday morning as volume remained relatively low ahead of the Christmas holiday. Bitcoin is trading at 49,000, which is a few points below the key resistance at 50,000. It has a market capitalization of more than $925 billion.
Bitcoin Fear and Greed Index Improves
The BTC/USD pair moved sideways as the fear and greed index improved. The index rose to the fear zone of 45. This is a significant increase considering that it was at 27 on Tuesday and about 28 on the same day last week. In most cases, Bitcoin tends to rise as the fear and greed index improves.
At the same time, on-chain data shows that Bitcoin hash rate has remained relatively stable even as the price moved sideways. The hash rate is currently at 169.69 EH/s, which is significantly higher than where it started the week at.
At the same time, the number of transactions in Bitcoin’s network have been in a bullish trend. This is likely because many people are sending Christmas gifts in the form of Bitcoin. Also, there is a likelihood that some companies are paying their staff using Bitcoin.
The price also held steady as divisions emerged about the future of Bitcoin and Web3. Web3 is a technology that seeks to decentralize how people use the web. In a statement on Tuesday, Jack Dorsey, the CEO of Block said that Bitcoin will likely replace the US dollar.
He, together with Elon Musk, questioned the future of Web3. He argued that the industry was being controlled by venture capital firms that have invested millions of dollars in the industry.
Later today, the BTC/USD will likely react to the latest economic data from the US. The most important will be the PCE data, which is Fed’s favourite inflation data.
BTC/USD Forecast
The daily chart sends a different signal about the BTC/USD pair. The chart shows that the pair is between the first and second support of the standard pivot point. It has moved slightly below the 25-day moving average. Also, the pair has formed a bearish flag pattern. In price action analysis, this pattern is usually a bearish sign.
On a positive side, the two lines of the MACD index have made a bullish crossover. Also, it appears that the pair has found substantial support at 45,400. Therefore, the pair will likely have a bullish breakout to about 50,000 later today. This price is along the first resistance of the standard pivot point.
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