Bullish view
- Buy the BTC/USD pair and set a take-profit at 73,500.
- Add a stop-loss at 70,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 69,000.
- Add a stop-loss at 73,000.
Bitcoin price rose to its highest level since May 21st as hopes of a bullish breakout rose. The BTC/USD pair rose to 71,175 as it continued nearing its highest point this year. It has jumped by almost 85% from its lowest point this year.
Bitcoin’s rally accelerated after Mike Novogratz made a bullish case for the coin in an interview with Bloomberg. He argued that the coin could soar to $100k by the end of the year if bulls push it above the year-to-date high of $73,653.
He cited numerous factors that could push Bitcoin higher. First, the Federal Reserve will likely start cutting interest rates later this year if inflation continues falling and the economic growth slowdown continues. Bitcoin and other risky assets thrive when the Fed is cutting rates.
Second, he noted that the industry was seeing regulatory clarity. The Securities and Exchange Commission (SEC) has already approved spot Bitcoin and Ethereum Exchange Traded Funds (ETFs). Also, politicians in Washington are considering passing some cryptocurrency bills in this session.
Further, he argued that investors were buying Bitcoin at a time when there are supply challenges in supply. Bitcoin balances in exchanges have crashed to the lowest level in years while the halving event has led to weak supply growth.
Looking ahead, the next important catalyst that could move the price of Bitcoin is the upcoming US nonfarm payroll (NFP) data. These numbers will provide more information about when the Federal Reserve will start cutting interest rates.
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BTC/USD Technical Analysis
Bitcoin price bottomed at $56,450 on May 1st and has bounced back to over $71,000. The 25-day and 50-day Exponential Moving Averages (EMA) have made a bullish crossover. It has also retested the crucial resistance at 71,870, its highest swing on May 21st.
The pair has also jumped above the Ichimoku cloud and the Woodie pivot point. Also, the Relative Strength Index (RSI) is nearing the overbought level. The Average Directional Index (RSI) has pointed upwards slightly. Also, the pair has formed an inverse head and shoulders pattern.
Therefore, the pair will likely have a bullish breakout as buyers target the year-to-date high of 73,653. A break above that level will point to more upside, with the next point to watch being at 75,000. The stop-loss of this view will be at 70,000.
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