The Bitcoin price pulled back after the spectacular rally that happened this week. The BTC coin is trading at $54,000, which is $1,000 below where it was in the overnight session. Still, it has surged by more than 86% above the lowest level in July this year.
Non-farm payrolls ahead
The BTC price jumped on Wednesday after signs emerged that more large investors were shifting some of their investments to digital currencies. Precisely, the head of Soros Fund Management confirmed that the investment company had acquired some Bitcoins.
He confirmed that the number of Bitcoins in the portfolio was relatively small. Still, analysts believe that the acquisition was a sign of confidence on the currency.
Another sign that many institutional investors were investing in Bitcoin was an announcement made by US Bancorp. The company said that it was launching custodial services to cater for institutional investors.
Meanwhile, Twitter has started allowing people to tip their favourite creators using Bitcoin and other select cryptocurrencies. These are positive catalysts that have helped push the Bitcoin price higher.
The next key catalyst for the BTC price is the budget deal made between Senate Republicans and Democrats. In a statement, Mitch McConnel, the Republican leader, said that he will provide the votes needed to prevent the US from defaulting on its obligations. Democrats will then be tasked with coming up with the complex reconciliation bill by December.
The new deal between the two sides is a win for both stocks and Bitcoin. Besides, an American default would lead to significant tensions that would drag all other financial assets.
The other catalyst will be the upcoming American non-farm payroll (NFP) data scheduled for Friday. The numbers are expected to show that the country’s unemployment rate declined to 5.1% while the economy added more than 500k jobs. These numbers are important for Bitcoin prices because they have an impact on the Federal Reserve.
Bitcoin price forecast
The daily chart shows that the BTC price jumped sharply on Wednesday. As it did that, the price managed to move above the key resistance level at $52,713, which was the highest level since September 7. The price also rose above the resistance at $50,000 this week.
At the same time, the Bitcoin price has moved above the 25-day and 50-day moving averages (MA) and the Ichimoku cloud. Therefore, the current decline is part of Bitcoin’s break and retest approach, In other words, I suspect that the price will retest the support at $52,713 and then resume the bullish trend.
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