The Bitcoin price will remain in an upward trend so long as it is above the ascending trendline.
Buy the BTC/USD above 55,383 (overnight low).
Add a take-profit at 60,000 and a stop loss at 53,000.
Set a sell-stop at 55,000 and a take-profit at 53,000.
Add a stop-loss at 58,000.
The BTC/USD declined in the overnight session as profit-taking intensified and traders reacted to comments by Peter Thiel and Jamie Dimon. The Bitcoin price is trading at $56,280, which is 6.50% below the highest point this week. Other major cryptocurrencies like Ether, Cardano and Ripple also declined.
Bitcoin Price Struggles
The BTC/USD price declined after Jamie Dimon, the chief executive of JP Morgan, the biggest bank in the US, published his closely-watched letter. In it, he warned that regulators needed to pay close attention to the new industries like cryptocurrencies, fintechs, and Decentralized Finance (DeFi). His comments were in line with what Janet Yellen, the new Treasury secretary, has called for in the past.
In the US, a key challenge is on which regulator oversees what. For example, the Securities and Exchange Commission (SEC) has said that it is responsible for overseeing Ethereum-based tokens. That’s because companies use these platforms to raise money. The Commodities and Futures Trading Commission (CFTC) oversees Bitcoin.
Meanwhile, Peter Thiel, one of the most prominent investors, criticized Bitcoin as being a tool for China. While he described himself as being pro-crypto and pro-Bitcoin maximalist, he cautioned that BTC is part of a Chinese financial weapon against the United States. These concerns could be used to toughen regulations, which could affect crypto prices.
The BTC/USD price is also falling because of profit-taking after it reached the key resistance at 60,000 this week. By Monday this week, the currency had gained by more than 40% from the lowest point in March.
BTC/USD Price Forecast
The four-hour chart shows that the BTC/USD price crossed the $60,000 resistance earlier this week. This was an important psychological level where it had struggled to move above before. Facing resistance, the pair declined to the overnight low of 55,376, which was along the red ascending trendline.
The pair has also moved below the 25-day and 15-day weighted moving averages (WMA) while the DeMarker indicator has declined to the oversold level. Therefore, the Bitcoin price will remain in an upward trend so long as it is above the ascending trendline. It has also formed an ascending triangle pattern. As such, there is a possibility that bulls will buy the dip and push it to this week’s high of $60,000.
On the flip side, a decline below the ascending support will be a bearish sign that will push the price lower to $53,000.