Bitcoin's uptrend remains robust with growing FOMO, pushing towards $50,000. BTC/USD shows bullish signs amid strong ETF demand and positive technical indicators, suggesting continued growth.
- Buy the BTC/USD pair and set a take-profit at 50,000.
- Add a stop-loss at 47,000.
- Timeline: 1-2 days.
- Sell the BTC/USD pair and set a take-profit at 47,000.
- Add a stop-loss at 50,000.
Bitcoin price continued its strong comeback during the weekend as it approached its highest point this year. The BTC/USD pair has risen in the past seven straight days and was trading at over 48,000 on Monday morning. This rally triggered a strong comeback of other digital currencies like Ethereum, Solana, and Avalanche.
Bitcoin ETF demand
There are two main reasons why the BTC/USD pair staged a strong comeback recently. First, there are signs that investors have embraced a risk-on sentiment in the past few weeks. This view is supported by the fact that American equities have surged, with the S&P 500 index sitting at its all-time high.
Further, the CNN Money fear and greed index has moved to the extreme greed zone while bond yields have pulled back. This performance is happening as the Federal Reserve makes the case for rate cuts at a time when the economy is doing well.
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Second, and most importantly, there are signs that investors are piling into spot Bitcoin ETFs. A look at these funds shows that those offered by the likes of Blackrock and Fidelity have attracted over $5 billion in the past few weeks.
Analysts expect that this demand will continue if Bitcoin continues doing well. The idea is that many institutional investors will allocate a small portfolio in these ETFs because Bitcoin has outperformed traditional assets in the past 15 years.
Looking forward, the BTC/USD pair will likely continue doing well as traders embrace Fear of Missing Out (FOMO) now that it is approaching the key resistance at $50,000.
BTC/USD technical analysis
Bitcoin price surged to over $49,000 after the Securities and Exchange Commission (SEC) approved the spot Bitcoin ETF in January. It then plunged hard to $38,500 as investors sold the news and took the initial profits. Recently, it has made a strong bullish breakout and is now nearing the YTD high. It has remained above the 50-day moving average.
The Average Directional Index (ADX) indicator has risen to 20, signaling that it has a strong demand. Further, the Percentage Price Oscillator (PPO) indicator has moved above the neutral point, which is also a positive sign.
Therefore, the outlook for Bitcoin is bullish, with the next point to watch being at $50,000. In the long term, there is a likelihood that the coin will jump to the all-time high of over $67,000.