Bullish view
Buy the BTC/USD pair and set a take-profit at 67,375.
Add a stop-loss at 62,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 62,000.
Add a stop-loss at 67,375.
The BTC/USD pair remained above the crucial resistance level of 65,000 after Strategy maintained its Bitcoin holdings last week and as ETF inflows continued in the United States. Bitcoin was trading at $65,100 on Tuesday, up substantially from this month’s low of $57,720.
Strategy Did Not Sell Bitcoin Last Week
The BTC/USD pair has remained in a narrow range in the past two weeks, helped by the actions by Strategy and American investors. In a statement on Monday, Michael Saylor’s Strategy said that it raised $225 million by selling shares. It now has $3.2 billion in cash, which is enough to pay dividends for nearly 2 years.
These funds mean that the company will not be under pressure to sell Bitcoin in the near future. In a statement in June, the management said that it hoped to raise over $1.5 billion in cash. Its goal has been to boost its cash reserves so that it can have enough resources to pay dividends to preferred shareholders.
Strategy has made two Bitcoin sales this year. It initially sold 32 coins and then sold coins worth over $200 million earlier this month.
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Meanwhile, American investors have been buying Bitcoin ETFs in the past few days. They have bought ETFs worth over $500 million in the last five consecutive days. Also, unless something major happens, chances are that they will have the first monthly inflow since April.
Bitcoin has done well as the volatility in the stock market has escalated, with concerns about the semiconductor industry rose. Also, the macro environment has become highly volatile as tensions between the US and Iran have jumped. Brent and the West Texas Intermediate (WTI) have soared by over 20% from the lowest point in June.
BTC/USD Technical Analysis
The four-hour chart shows that the BTC/USD pair has formed an ascending channel this month. It is nearing the upper side of this channel. Already, it has moved above the 50-period moving average, a sign that bulls are in control for now.
The two lines of the MACD indicator have risen, crossed the zero line, and are pointing upwards. It has jumped above the Supertrend indicator. Therefore, the pair will likely continue rising as bulls target the important resistance level of 67,375, its highest point in June this year. A drop below the 50-period moving average of 64,180 will invalidate the bullish outlook.
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