The pair will likely retreat as investors target the lower side of the descending channel at around 55,000.
Sell the BTC/USD and set a take-profit at 55,000.
Add a stop-loss at 59,000.
Timeline: 1-2 days.
Set a buy-stop at 58,000 and add a take-profit at 60,000.
Add a stop-loss at 55,000.
The BTC/USD pair was little changed in the overnight session as the market waited for the latest American confidence data. The pair is trading at 57,400, which is about 8% above the lowest level in November.
Jack Dorsey Resigns
In one of the biggest corporate stories this week, Jack Dorsey, the Twitter CEO, announced that he would step down. He will still be the CEO of Square, a company that he started in 2009.
In announcing his resignation, he said that the decision will give him more time to handle some of his interests. In an earlier statement, the CEO had talked about his vision for Bitcoin and the blockchain industry.
Therefore, because of his long track record of starting and running two successful companies, analysts believe that the decision will be positive for BTC. In an interview with CNBC, FundStrat’s Tom Lee said that focusing on cryptocurrencies will help boost the adoption of BTC.
The BTC/USD pair also rebounded after Friday’s sell-off as the overall fear of the new Omicron variant eased. This happened as the market learned more about the new variant.
Analysts believe that the variant will not have a major impact on global stocks and cryptocurrencies. Besides, the world now has the experience of dealing with the virus. This explains why stocks and commodities rallied on Monday.
Another positive thing is that the variant means that the Federal Reserve will take more time to start its tightening phase.
The BTC/USD pair will today react to the latest economic data from the United States. The Conference Board will publish the closely-watched consumer confidence figure. Analysts expect these numbers to show that confidence declined slightly in November as inflation concerns remain.
The four-hour chart shows that the BTC/USD pair rose to a high of 68,955 in November. It then retreated as the demand for the coin waned. This saw it dropping to a low of 53,574 on Friday. Now, the pair has moved slightly above the standard pivot point. It is also slightly below the upper side of the descending channel shown in pink.
Therefore, the pair will likely retreat as investors target the lower side of the descending channel at around 55,000. On the flip side, a move above 59,000 will invalidate this view.