More Upside amid NASDAQ Correlation

The pair will likely continue rising as bulls target the first resistance at 25,000.

Bullish View

• Set a buy-stop at 22,000 and a take-profit at 25,000.
• Add a stop-loss at 20,000.
• Timeline: 2 days.

Bearish View

• Set a sell-stop at 20,500 and a take-profit at 18,000.
• Add a stop-loss at 22,000.

The BTC/USD price remained in a consolidation phase during the weekend as the market sentiment improved. The pair is trading at 21,400, which is comfortably above this month’s low of 17,650. Other cryptocurrencies like Ethereum and Ripple also rose.

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Bitcoin and Stocks Correlation

Last week was a positive one for the financial market as most assets rose. American indices like the Dow Jones, Nasdaq 100, and S&P 500 had their first positive week in three weeks. On Friday, the Dow Jones rose by over 800 points while the Nasdaq rose by over 400 points.

This rebound happened even after two days of grueling testimony of Jerome Powell by American lawmakers. Speaking at the Senate and House of Representatives, Powell reiterated that the bank will continue tightening rates until inflation starts easing. Stocks rose because investors had already priced in this hawkish tone by the Fed.

The BTC/USD pair also rose after it emerged that Goldman Sachs was getting interested in cryptocurrencies. The company is said to be raising funds to acquire Celsius, the embattled cryptocurrency lender. The acquisition price is expected to be about $2 billion, making it a favorable exit for the troubled firm.

Meanwhile, FTX, the giant crypto company announced that it would acquire a stake in BlockFi, another crypto lender. Last week, the firm extended a $250 million loan to stabilize the company as the number of redemptions rose.

The next key catalyst for the BTC/USD pair will be the upcoming American housing data. The US will publish the latest pending home sales data. Analysts expect the data to show that pending home sales declined by more than 4% in May. The US Conference Board will publish the latest consumer confidence data on Tuesday.

BTC/USD Forecast

The four-hour chart shows that the BTC/USD pair has been in a tight range in the past few days. The pair has struggled moving above the important resistance level at 21,684, which was the highest point last month. It is also slightly above the 25-day and 50-day moving averages while the RSI is moving upwards. The pair is also along the standard pivot point.

Therefore, the pair will likely continue rising as bulls target the first resistance at 25,000. A drop below the support at 20,000 will invalidate the bullish view.