In the near term, there is a possibility that the price will rebound and possibly retest the all-time high at $42,000.
Set a buy stop at 36,000 to take advantage of the bullish flag.
Have a take-profit at the psychological level of 40,000.
Add a stop-loss at 31,250.
Timeline: 1 – 2 weeks.
Set a sell-stop at 31,250, which is below the lower side of the flag.
Add a take-profit at 29,000 and a stop-loss at 34,000.
The BTC/USD rose slightly yesterday after Elon Musk, the richest person in the world, said that he was a strong supporter of the currency. The Bitcoin price is trading at $33,790, which is about 20% below the all-time high of $42,000.
Elon Musk Supports Bitcoin
On Friday, the Tesla CEO, who has a net worth of more than $190 billion, changed his Twitter profile to “Bitcoin.” Yesterday, in an interview, he said that he was a strong supporter of the currency. This pushed more people and institutions to buy BTC.
In recent months, other prominent people have expressed their support for the currency. For example, Jack Dorsey, the CEO of Twitter and Square has talked about its importance. Today, Square is one of the biggest players in the industry.
Further, Ray Dalio, the founder of the biggest hedge fund in the world has talked about the currency. A few years ago, he was among the biggest critics. Other influential people that have turned bullish on Bitcoin prices are Stanley Druckenmiller and Scott Minerd of Guggenheim Partners.
However, in recent days, inflows into Bitcoin funds by institutional investors has wavered, leading many people to question whether the price can retest its all-time high.
Meanwhile, there are concerns of more regulations in the cryptocurrency industry. Treasury Secretary and former Fed Chair Janet Yellen has said that the government should deliver more regulations to curtail the industry. This could be done by investigating and adding more regulations to cryptocurrency exchanges like Gemini and Coinbase.
The concerns have accelerated after the recent activities in Reddit. In the past two weeks, traders in these forums have managed to push the price of hated stocks like GameStop and AMC up. During the weekend, they pushed the XRP price up by more than 100% only for it to crash yesterday.
BTC/USD Technical Outlook
The daily chart shows that the BTC/USD has been consolidating in the past few weeks. It is 20% below its highest point ever and 18% above the January 22 low of 28,650. The pair has formed what seems like a bullish flag pattern. As a result, it is at the same level as the 25-day and 15-day exponential moving averages while the MACD is at a neutral level. Therefore, in the near term, there is a possibility that the price will rebound and possibly retest the all-time high at $42,000.