Latest News

BTC/USD Forex Signal: Bitcoin Still Stuck in a Range – 21 April 2022

The Bitcoin will likely remain in this tight range on Thursday. The key support and resistance levels will be at 40,000 and 44,000.

Bullish View

Buy the BTC/USD pair and set a take-profit at 44,000.Add a stop-loss at 40,000.Timeline: 1 day.

Bearish View

Set a sell-stop at 40,500 and a take-profit at 38,000.Add a stop-loss at 42,000.

The BTC/USD pair strong rebound eased on Wednesday evening and Thursday morning as Bitcoin diverged with American equities. The pair is trading at 41,352, which is slightly below the highest level this week. This price is also higher than the lowest level this week.

Advertisement

Bitcoin and Nasdaq 100 Correlation

The BTC/USD pair declined as the tech-heavy Nasdaq 100 index dropped by more than 100 points. The index declined as investors continued to worry about Netflix, one of the biggest media companies in the United States.

The company’s stock crashed by over 35% after it published weak quarterly results. It warned that it will have a difficult time experiencing growth in the coming years considering that competition has risen substantially recently. As a result, most tech companies like Spotify, Paramount, and Roblox tumbled by more than 10%.

In the past few months, the correlation between Bitcoin and other technology companies has emerged. This relationship has not been all that pronounced in other indices like Dow Jones and S&P 500 indices.

The BTC/USD pair has held steady this week as interest among big investors continue rising. For example, on Wednesday, Robinhood announced that it had acquired Ziglu, a UK company that offers cryptocurrency trading services.

A day earlier, Bloomberg reported that The Sandbox was raising $400 million at a $4 billion valuation. This fundraising will be one of the biggest this year. Other blockchain companies that have raised funds recently include Near Protocol and Ava Labs, the parent of Avalanche.

Still, macro factors have also affected the price of Bitcoin. For example, bond yields have jumped sharply as investors anticipate that the Federal Reserve will be aggressive when hiking interest rates.

BTC/USD Forecast

Bitcoin is still trading in a narrow range. It dropped to about 38,590 on Monday and then rose to a high of 42,256 as US stocks rose. It has moved slightly above the 25-day moving average while the MACD indicator has been in a strong upward trend. The current price is along the 50% Fibonacci retracement level.

Therefore, Bitcoin will likely remain in this tight range on Thursday. The key support and resistance levels will be at 40,000 and 44,000. A move below 40,000 will signal that there are still more sellers in the market. As a result, there is a likelihood that the price will retest 38,700 if this happens.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *