The pair will likely resume the upward trend as bulls target the key resistance at 70,000.
Set a buy-stop at 69,000 and a take-profit at 71,000.
Add a stop-loss at 67,000.
Timeline: 1-2 days.
Set a sell-stop at 63,000 and a take-profit at 60,000.
Add a stop-loss at 65,000.
The BTC/USD pair jumped to an all-time high on Wednesday as investors reflected on the rising global inflation. The pair rose to a high of 69,166 and then quickly erased some of those gains. It is trading at 64,322, giving Bitcoin a market capitalization of more than $1.2 trillion.
Global Inflation Soars
In the past few years, many investors have moved to digital currencies like Bitcoin to hedge against rising inflation.
Data published on Wednesday showed that global inflation is rising at a relatively quick speed. For example, in China, the numbers revealed that the headline consumer inflation more than doubled to 1.5% in October. The Producer Price Index also rose to 13.5%. Since China is the world’s manufacturer, it means that prices will keep rising in other countries as well.
In Germany, inflation rose to 4.5%, which was the biggest level in more than a decade. Elsewhere, in the United States, data showed that inflation rose to a 30-year high of 6.2%. Core inflation that excludes volatile food and emergy prices rose to 4.6%.
Meanwhile, the BTC/USD also rose after signs emerged that more influential people had bought Bitcoin. The most notable one was Tim Cook, the Chief Executive at Apple. In an interview, he disclosed that he owned Bitcoin.
This was an important announcement because it signalled that Apple too could move to embrace Bitcoin. That would be a significantly influential move because Apple is the biggest company in the world by market capitalization.
The BTC/USD retreated because of the importance of the 70,000 resistance level. Historically, the currency tends to retreat when it approaches such an important level.
On the daily chart, we see that the BTC/USD pair rose to an all-time high on Wednesday. This level was above the previous all-time high of 66,895. It then erased some of those gains and moved below the key support at 65,189.
The pair has formed a break and retest pattern, which is usually a bullish signal. Also, it has also formed a cup and handle pattern and is above the 25-day and 50-day moving averages. Therefore, the pair will likely resume the upward trend as bulls target the key resistance at 70,000.