Bully view
- Buy the BTC/USD pair and set a take-profit at 32,500.
- Add a stop-loss at 30,000.
- Timeline: 1 day.
Bearish view
- Set a sell-stop at 31,000 and a take-profit at 30,000.
- Add a stop-loss at 32,000.
Bitcoin price made a bullish breakout as investors embraced a risk-on sentiment in the market. The BTC/USD price retested the year-to-date high of 31,422 as demand for the coin jumped. In all, the coin has jumped by more than 265 from the lowest point in June this year. It has soared by over 90% this year.
Bitcoin jumped after BZX Exchange announced that it had refiled its application for spot Bitcoin ETF. BZX is a company backed by Cboe, one of the biggest companies in the options industry. Other companies that have filed for ETFs are Blackrock, Ark Invest, and Fidelity.
Most of these companies have selected Coinbase as their custodians. They have also introduced surveillance clauses in their proposals. Still, it is unclear whether the Securities and Exchange Commission (SEC) will accept these proposals.
At the same time, the fear and greed index has jumped to the greed area of 62 while the US dollar index has drifted downwards. The same is true for the VIX index, which is the best indicator of volatility, has also been in a strong downward trend.
Bitcoin also rallied as some technology companies jumped. Electric vehicle companies like Tesla and Rivian jumped sharply after announcing strong delivery numbers. In many instances, Bitcoin has a close correlation with these companies.
BTC/USD technical analysis
Bitcoin has been in a strong bullish trend in the past few days. It has jumped from last month’s low of 24,784 to a high of 31,438. The pair managed to move above the psychological level of 30,000. At the same time, the BTC/USD pair has formed a bullish flag pattern. It also moved above the important resistance point at 31,023, the highest point on April 14th,
Bitcoin has also jumped above the 50-period moving average and the Ichimoku cloud. At the same time, the Relative Strength Index (RSI) has moved slightly below the overbought level. The stochastic Oscillator and the MACD have also continued rising.
Therefore, the outlook for the BTC/USD pair is bullish, with the next level to watch being at 32,500. Further gains will likely push the coin to the next psychological level at 35,000.
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