BTC/USD Forex Signal – Inverse Head And Shoulders Pattern Forms

Bullish view

 Bearish view

Bitcoin price continued to consolidate in the evening session as investors waited for the upcoming Federal Reserve decision. The BTC/USD pair has been stuck below the key resistance point at 70,000 in the past few days.This price action happened even as the industry saw some positive catalysts. First, the monthly data released by most Bitcoin mining companies showed that their production dropped sharply in May as the impact of the halving event continued.Numbers by companies like Riot Blockchain, Marathon Digital, and Bitfarms showed that production fell by almost half, which is a positive sign.At the same time, the amount of Bitcoin in exchanges has dropped sharply in the past few weeks. This is partly because many holders have moved their tokens to private wallets, meaning that they are not about to sell.On the other hand, Bitcoin demand has continued rising in the past few weeks. Data shows that the total Bitcoin ETF holdings have jumped to over 800k, which is equivalent to over $60 billion. This is a sign that many investors are buying these funds.The BTC/USD pair has wavered as concerns about the Fed’s rate cuts remain after the strong jobs numbers. While some analysts expect the Fed to slash interest rates in July, others believe that the bank will not be in a hurry.Instead, the Fed will only cut rates when it sees evidence that inflation is falling. Recent data showed that inflation remained above the Fed’s target of 2.0% in April. Bitcoin does well when there are hopes that the Fed will slash interest rates. BTC/USD technical analysisBitcoin bottomed at $56,450 in May and has crawled back in the past few weeks. It rebounded and moved to the crucial resistance point at 70,000. The BTC/USD pair has moved above the 50-day and 25-day moving averages.Most importantly, it has formed an inverse head and shoulders pattern and is now sitting near its neckline. The inverse H&S pattern is one of the most bullish signs in the market.Also, the Awesome Oscillator has moved above the neutral point at zero. Therefore, the pair will likely have a bullish breakout in the next few days or weeks. If this happens, the initial level to watch will be last week’s high of 71,870. A break above that level will see it rise to the YTD high of 73,650.More By This Author:CAC 40 Index Forecast: Is This Sell-Off An Overreaction? GBP/USD Forex Signal: Sits At A Key Resistance As Focus Shifts To The Fed Decision AUD/USD Forex Signal: On The Cusp Of A Bearish Breakout To 0.6540