Buying BTCUSD with target of 67,750 due to Fed monetary policy easing

The BTCUSD exchange rate is moderately declining on Tuesday due to a stronger dollar as traders are awaiting key US inflation data. These data may shed light on the scope of potential interest rate cuts by the Federal Reserve (Fed) next week.

Bitcoin dropped on Friday and continued to fall over the weekend. This happened after the publication of the Non-Farm Payrolls report for August. The number of employed people increased by 142,000, which is significantly lower than the forecasted 164,000. This gap caused a new wave of uncertainty in the cryptocurrency market. Slower employment growth has raised fears of a recession and a potential lack of liquidity in financial systems. Investors have started adopting more conservative strategies and avoiding high-risk assets such as cryptocurrencies, even though they are quite popular.

The market is focused on Wednesday's Consumer Price Index (CPI) and Thursday's Producer Price Index (PPI). According to a poll by Reuters, the CPI for August is expected to rise by 0.2% month-on-month.

Bitcoin is currently in a period of consolidation, which is being held back by a slight strengthening of the dollar. However, lower interest rates usually make digital assets more attractive as fiat currencies weaken.

According to the CME FedWatch Tool, the Fed is very likely to ease monetary conditions in September. The probability of a 25-basis-point rate cut is estimated at 70%, and a 50-basis-point cut at 30%.

Technical analysis of BTCUSD shows that a wide downward correction is forming on the daily timeframe (D1). The price, having pulled back from the trend support, demonstrates the strength of the current range and is heading towards the resistance level. Volumes of Moving Average of Oscillator (with 12, 26, 9 parameters) are approaching the positive zone. Overcoming the level of 0 may strengthen the bullish sentiment.

Short-term prospects for BTCUSD suggest buying, with the target at the target level of 67,750.00. Part of the profit should be taken near the level of 61,750.00, while a Stop loss could be set at 49,000.00.

Since the bullish trend is short-term, the trading volume should not exceed 2% of your total balance to reduce risks.