Bullish view
- Buy the BTC/USD pair and set a take-profit at 66,000.
- Add a stop-loss at 60,000.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 62,500 and a take-profit at 60,000.
- Add a stop-loss at 65,000.
Bitcoin price continued its strong performance during the weekend amid rising concerns about supply. The BTC/USD pair jumped to over 63,500 as bulls target the year-to-date high of 64,000. It has jumped by over 60% from its lowest level in 2024.
Bitcoin supply concerns
The BTC/USD pair has jumped sharply this year as concerns about supply continued rising. The amount of Bitcoin held in exchanges has remained under pressure in the past few days.
At the same time, demand has continued rising as a sense of Fear of Missing Out (FOMO) spread in the financial market. There is also strong demand from ETF investors as the iShares Bitcoin Trust (IBIT) has accumulated over $10 billion in assets.
IBIT has become the fastest ETF in the world to get to $10 billion and analysts believe that the trend will continue rising. Some experts believe that the fund’s assets will cross the SPDR Gold ETF (GLD), which has over $54 billion in assets.
The supply concerns will continue ahead of the upcoming halving event, which will reduce the number of Bitcoins produced every day. This halving is expected to happen in April this year and reduce the number of daily BTC rewards to about 450.
In most cases, Bitcoin tends to rise sharply ahead of the halving event. For example, it jumped to a record high of $64,000 in 2021 ahead of the last halving.
The BTC/USD pair has also jumped because of the ongoing sentiment in the market as the fear and greed rose. The index has jumped to the extreme greed zone of 83, which is a sign that a risk-on sentiment has prevailed.
This situation is also happening in the US equities market where the key indices like S&P 500 and Nasdaq 100 have jumped to a record high.
BTC/USD technical analysis
The BTC/USD pair has had a strong performance this year as demand continued rising.On the 4H chart, the pair has formed a bullish pennant pattern. In most periods, this pattern is one of the most bullish signs.
Bitcoin has remained above all moving averages, signaling that bulls are still in control. The MACD indicator has remained above the zero line even as it continues pointing downwards. Therefore, the pair will likely have a bullish breakout as investors target the all-time high of 69,000.
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