In the near term, the BTC/USD will likely continue rising as bulls target the all-time high of near $62,000.
Buy the BTC/USD and set a take-profit at 62,000.
Add a stop loss at 55,000.
Timeline: 1-2 days.
Set a sell-stop at 55,000 and a take-profit at 52,000.
Add a stop-loss at 58,000.
The BTC/USD price is little changed as investors reflect on the successes and pitfalls of the first quarter. The Bitcoin price is trading at $59,000, which is 100% above where it started the quarter. It is also a few points below the all-time high of $62,000.
Bitcoin Readies for Second Quarter
The first quarter was relatively successful for Bitcoin and other digital currencies. Its price more than doubled while its total market cap soared to more than $1 trillion. However, the past few weeks of the quarter were relatively weak as investors refocused on the strong US dollar and the rising bond yields.
The BTC/USD is holding steady after it emerged that Blackrock, the biggest asset manager in the world, was actively trading the digital currency in the first quarter. The company traded Bitcoin worth just $360,000, a tiny amount compared to its $8 trillion worth of assets. In the past, the company had indicated that it was interested in the crypto industry.
The BTC/USD is also rising as the market braces for another $2.3 trillion spending spree in the United States. The government plans to spend these funds to rebuild the infrastructure and boost research and development. While this spending will push the dollar higher because of the rising bond yields, it also makes the case for Bitcoin. Unlike fiat currencies, Bitcoin supply will never move above 21 million.
Later today, the BTC/USD will react to the US Manufacturing PMI and initial jobless claims numbers. The data will come a day before the US publishes its non-farm payroll numbers.
BTC/USD Technical Outlook
The four-hour chart shows that the Bitcoin price rose to $59,000 in the overnight session. The price has moved above the upper side of the descending channel. This channel resembles a bullish flag pattern. The uptrend is also being supported by the 25-day and 15-day moving averages. The Relative Strength Index (RSI) and other oscillators have moved to the overbought zone.
Therefore, in the near term, the BTC/USD will likely continue rising as bulls target the all-time high of near $62,000. A move above that resistance will see the price surge to more than $70,000, later in the quarter. However, a drop below $55,000 will invalidate this trend.