While the Coinbase listing was a success, the BTC/USD price dropped because of the scenario known as buying the rumour, selling the news.
Buy the current BTC/USD dip and set a take-profit at 65,000.
Add a stop loss at 61,000.
Timeline: 1 day.
Set a sell-stop at 61,220 (slightly below the upper side of the triangle).
Add a take profit at 60,000 and a stop loss at 63,000.
The BTC/USD price retreated after hitting its all-time high of almost 65,000. The Bitcoin price is trading at $62,988, which is about 3% below its highest level ever.
Buy the Rumour, Sell the News
The Bitcoin price surged ahead of the Coinbase direct listing. The biggest crypto exchange debuted yesterday in the public market through direct listing. Its first day of trading was highly successful as the stock opened at $381 and soared to $430.
This price was better than the target of $250. At its peak, the company achieved a valuation of more than $85 billion, making it one of the biggest financial service providers on record.
Therefore, while the Coinbase listing was a success, the BTC/USD price dropped because of the scenario known as buying the rumour, selling the news. It happens when there is market optimism before a key event that is followed by prices retreating after the actual event.
The BTC/USD also retreated as investors took profits after a strong rally. Bitcoin’s price has more than doubled this year making its results better than gold, silver and the overall stock market.
The Bitcoin price also fell as it approached the key psychological level of $65,000. In the past, the price has found substantial resistance when it approaches such key levels. That’s partly because many investors put a take-profit slightly below the level leading to more selling pressure.
Later today, the BTC/USD will react to the performance of US bonds and the US Dollar Index. The two will react to the latest US retail sales numbers that are expected to have soared in March because of the stimulus package.
BTC/USD Technical Forecast
On the four-hour chart, we see that the BTC/USD price broke out above the resistance at 61,225 this week. This was an important level where it had struggled to move above before. It then gained momentum and soared to an all-time high close to 65,000. Overnight, the price erased some of its earlier gains and retested the now-support at 61,225 and bounced back. It remains above the short- and longer-term moving averages and above the green ascending triangle pattern.
Therefore, after the overnight dip, there is a possibility that the price will rebound as bulls attempt to retest the important psychological level of 65,000. Any moves above this level will bring the next key level of 70,000 into view.