Bullish view
- Buy the BTC/USD pair and set a take-profit at 94,000.
- Add a stop-loss at 87,000.
- Timeline:1-2 days
Bearish view
- Sell the BTC/USD pair and set a take-profit at 87,000.
- Add a stop-loss at 94,000.
The BTC/USD pair rose for the second consecutive day, moving above the important resistance level at 90,000 after Donald Trump eased tensions during his visit to Switzerland. Bitcoin has rebounded from this week’s low of $87,200.
Donald Trump Removes the Tariff Threat
The BTC/USD pair rose after Trump delivered a speech at the World Economic Forum event in Davos, Switzerland. In it, the president pledged to make the US the crypto capital of the world by implementing friendly policies.
The president cited the passed GENIUS Act and the upcoming CLARITY Act, which has stalled in the Senate. He believes that Senate negotiators and the industry will reach a deal on the Market Structure Bill that aims at streamlining the regulatory situation in the US.
The bill stalled last week after Coinbase withdrew its support, citing the fact that it largely banned crypto exchanges from offering stablecoin rewards. Banks have argued that allowing these rewards risks removing billions of dollars from their institutions.
The BTC/USD pair also rose after Trump announced that he suspended the proposed tariffs on a few NATO members after a meeting with the head of NATO. He had proposed these tariffs for support Denmark.
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Bitcoin also rose as American equities rebounded, with the Dow Jones and Nasdaq 100 indices rising by over 0.45%. These indices rose as investors reacted to Trump's speech in which he ruled out military options for Greenland.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair dropped to the important support level at 87,100 this week, erasing all gains made earlier this year. It then crawled back, reaching a high of 90,000’
The pair remains below the important strong, pivot,reverse level of the Murrey Math Lines tool at 94,392. It also moved below the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator.
The BTC/USD pair retested the lower side of the ascending triangle pattern, confirming a break-and-retest pattern.
Therefore, the most likely scenario is where it continues falling, potentially to the key support level at 85,000. A drop below that level will point to more downside, potentially to the support at 80,000.
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