BTC/USD Forex Signal: Bitcoin Extremely Bullish Above $59,975

Crispus Nyaga

In the near term, the pair’s bullish trend will be confirmed if it moves above the important resistance at $59,975.

Bullish View

  • 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.

Bearish View

  • 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.

BTC/USD

Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.