Bullish view
Bearish view
- Set a sell-stop at 29000 and a take-profit at 27,000.
- Add a stop-loss at 30,000.
The BTC/USD price made a strong rebound during the American session as traders bought the dip after days of consolidating. Bitcoin jumped to a high of 30120, the highest level since June last year. It has jumped by over 50% from the lowest point this year.
Bitcoin’s rebound happened even as American bond yields drifted upwards, signaling that traders expect the Fed to continue hiking rates. The 10-year yield rose to 3.41% while the 2-year jumped to 4% for the first time in weeks.
Bitcoin also rose as the US dollar index jumped by more than 50 basis points. The index, which tracks the performance of the US dollar against a basket of currencies, rose for the third day straight as traders reacted to the strong jobs numbers. In the past, Bitcoin tends to move in the opposite as the US dollar.
BTC jumped as the market waited for the upcoming bank earnings season that will start on Friday when leading banks like JP Morgan, Citigroup, and Wells Fargo will publish their results. Regional banks like PNC, M&T Bank, and Park National Bank will publish their results next week.
Analysts expect volatility in the banking sector when these companies will publish their results mostly because of their exposure to commercial real estate. In the past few weeks, Bitcoin has performed well during the banking crisis.
Bitcoin also jumped after data showed that the number of Bitcoin holders who are maintaining their positions has increased. This means that they are not selling even as the coin remained in a consolidation phase.
The next data to watch will be the upcoming US inflation number scheduled for Wednesday. These numbers will provide more information about what to expect in next week’s Fed meeting.
BTC/USD technical analysis
The 4H chart shows that the BTC/USD jumped sharply in the overnight session. It rose above the important resistance point at 29,378, the highest point this year. The pair has moved above the 25-day and 50-day moving averages while the MACD has pointed upwards.
Therefore, the outlook of the pair is bullish, with the next key level to watch being at 31,000. A move below the support at 29,378 will invalidate the bullish view.
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