In the near term, the pair’s bullish trend will be confirmed if it moves above the important resistance at $59,975.
Set a buy stop at $59,975 (last week’s high).
Add a take-profit at $62,000 (all-time high).
Set a stop loss at $56,425.
Set a sell-stop at $56,425 and a take-profit at $54,000.
Add a stop-loss at $58,000.
The BTC/USD price bounced back on Monday after it dropped to 56,505. The Bitcoin price is trading at $58,778, which is slightly below the weekend high of about $60,000. Its market capitalization has surged to more than $1.1 trillion.
Bitcoin Goes Mainstream
The BTC/USD has been attempting to move above the all-time high of close to 62,000. In the past few weeks, however, the currency has managed to move above the March low of 50,200 to almost $60,000. This performance is mostly because of the rising demand for the digital currency from institutional investors. Also, the commitment by the Federal Reserve to leave interest rates low has incentivized people to buy more coins.
To a large extent, BTC has rallied because the digital currency has gone mainstream. Next week, Coinbase, the giant US crypto exchange, will go public in New York. It is currently valued at more than $68 billion in the private market. Further, Visa has made plans to start accepting stablecoins like the USD Coin while companies like Tesla and Square have bought Bitcoin in large numbers.
At the same time, institutional investors are getting optimistic about the currency. In a report last week, JP Morgan said that it expects the currency to double to $130,000. The analysts cited the recent low volatility in the coin, which could attract more institutional investors. They also said that the currency was becoming a viable alternative to gold, whose price has dropped substantially this year.
Further, in a report yesterday, Grayscale Bitcoin Trust, the biggest Bitcoin investment vehicle in the world, said that it would convert into an ETF. That conversion will likely lower the cost of investing in the vehicle and make it more attractive.
BTC/USD Technical Signal
The four-hour chart shows that the Bitcoin price has found a substantial resistance at $59,975. It has also formed a small ascending triangle pattern that is shown in black. The uptrend is also being supported by the moving averages while the Relative Strength Index (RSI) is at the neutral level of 50. Therefore, in the near term, the pair’s bullish trend will be confirmed if it moves above the important resistance at $59,975. Any move above this price will bring the all-time high into view. On the flip side, a drop below $56,425 will invalidate this trend.