There is a possibility that the Bitcoin price will keep rising as momentum returns.
Set a buy stop at 58,300 (yesterday high).
Add a take profit at 60,000 and a stop-loss at 55,000.
Set a sell-stop at 55,000 and a take-profit at 53,000.
Add a stop-loss at 57,000.
The BTC/USD bounced back even as US Treasury yields rose, pushing the greenback higher. The Bitcoin price rose to $58,340, which was 16.23% above the Thursday low of $50,342. Its market cap has risen back to more than $1.07 trillion.
Bitcoin Bounces Back
The BTC/USD rallied after Visa became the first major company to unveil settlements using USD Coin, the popular stablecoin valued at more than $10 billion. The transactions will be first tested using Crypto.com, an exchange that runs Visa-branded cards.
USD Coin is relatively different from Bitcoin. Founded by Circle and Coinbase, the currency is built on the Ethereum blockchain and is backed by the US dollar. Recently, it has started to support other blockchains like Algorand and Stellar.
While USD Coin has no relation to Bitcoin, the latter’s price soared because the deal provides validation for the industry. Other major companies like Tesla, Fidelity and Square have also helped boost the validity of the industry.
The BTC/USD price is also rising as bulls buy the dips. This is after the price dropped sharply last week and attempted to cross the important support at 50,000. Also, it rallied as the market reacted to positive statements by Cathie Wood, the founder of Ark Invest. In a speech at the CBOE, she talked about the longer-term potential of the currency. In total, she expects the Bitcoin price to surge to more than $200,000 in the longer term.
The Bitcoin price rallied even as US bond yields and the US dollar rose. The 10-year bond yield rose to 1.74%, the highest level in more than a year as inflation bets rose. This action pushed the US Dollar Index higher. The Bitcoin price has an inverted relationship with the US dollar.
BTC/USD Technical Forecast
The four-hour chart shows that the BTC/USD pair rose sharply yesterday. It managed to move above the descending channel shown in black. It has also moved above the 15-day and 25-day exponential moving averages (EMA) while the Relative Strength Index (RSI) has continued to rise. Therefore, there is a possibility that the Bitcoin price will keep rising as momentum returns. The next key level to watch is the psychological level of 60,000. However, the invalidation point for this price action will be a drop below 55,000.