Bitcoin price triggers relief rally to $42,000

Bitcoin price sees an underpinning floor built at $38,000.
BTC price sees RSI ticking higher, pointing to bullish momentum.
Expect a rally above $42,000 towards $44,000 against the monthly R1.

Bitcoin (BTC) price is set for a change of mindset after the bearish moves that resulted in a downtrend since April. BTC price is now being underpinned at around $38,000. A lift in the Relative Strength Index (RSI) shows that investors are back with risk appetite on their minds. Expect to see a 15% jump in BTC price towards $44,000 after the FED rate decision this evening.

Bitcoin price set to jump 15% in the FED aftermath

Bitcoin price sees bulls returning to the scene as the RSI is nudging higher, showing the demand side volume picking up steam, outweighing the sell-side. WIth that rebalancing, BTC price is trading further away from $38,000, a level that got underpinned after bulls defended it at the beginning of this month and at the end of April. That, together with the RSI on the low end, made bears book profit and could see them fade away for some time.

BTC price is thus in an area where there is room to move further higher, given the lack of significant bearish volume. As bulls will be able to run prices higher, expect first to see BTC price try and hit $42,000 around that dashed blue line that coincides with the 55-day Simple Moving Average (SMA). It would be perfect for a test, or re-entry for a long, and could see the price swing up to $44,088.73, a historic pivot that coincides with this month's monthly R1 resistance level.

BTC/USD daily chart

Risk sentiment could still change as investors see a struggling earning season unfolding for US equities. With still some big corporations due to report earnings, a drop in global markets could easily be triggered before or after the closing bell, erasing all profits intraday and dragging price action to the downside. BTC price could fall back to $36,709.19, and if it breaches that, a nosedive move will likely happen to $32,649.28.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram