Bullish view
- Buy the BTC/USD and set a take-profit at 45,000.
- Add a stop-loss at 42,500.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 43,000 and a take-profit at 42,000.
- Add a stop-loss at 44,300.
Bitcoin price made signs of a bullish breakout as investors cheered the slow but steady inflows in key ETFs. The BTC/USD pair spiked to 43,550 on Thursday morning also as traders embraced a risk-on sentiment.
Bitcoin ETF inflows
There are signs that investors are moving some of their cash to recently launched spot Bitcoin ETFs. Data by VettaFi shows that Grayscale Bitcoin Trust (GBTC) is still the biggest Bitcoin ETF with over $20 billion in assets. Recently, the fund has lost over $5 billion in assets as investors embrace its cheaper alternatives.
iShares Bitcoin ETF (IBIT) has reached over $3.2 billion assets, making it the second-biggest ETFs this year. Notably, it is now among the top five of the biggest ETFs in terms of inflows this year. It is followed by the Fidelity Wise Origin Bitcoin ETF, which has over $2.6 billion in assets. Analysts believe that these ETFs will gain assets in the coming months as Bitcoin becomes an important part of a balanced portfolio.
Bitcoin also drifted upwards as a risk-on sentiment spread in the market. In the US, the Dow Jones jumped by more than 150 points while the S&P 500 and Nasdaq 100 rose by 40 and 145 points, respectively.
This jump happened as investors continued to assess the next actions by the Federal Reserve. Jay Powell and other Fed officials have confirmed that the bank will not hike interest rates in March because the economy is still strong.
Fed actions tend to have an impact on risky assets like Bitcoin and tech stocks. In most cases, these assets tend to do well when the Fed is hinting that it will cut interest rates. The other potential catalyst for Bitcoin will be the upcoming Bitcoin halving, which is set for April this year.
BTC/USD technical analysis
The 4H chart shows that the BTC/USD pair continued consolidating on Thursday morning. It is approaching the important resistance at 43,720, its highest point since January 30th. This price is also the upper side of the ascending triangle pattern. The pair remains above the 50-period moving average while the MACD is stuck at the neutral point.
Therefore, the outlook for the pair is bullish, with the next point to watch being at 45,000. On the flip side, the alternative is where it stages a bearish breakout, with the next point to watch being at 42,000.
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