Bullish view
Buy the BTC/USD pair and set a take-profit at 70,000.
Add a stop-loss at 64,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 64,000.
Add a stop-loss at 70,000.
Bitcoin price held steady and moved above the key resistance level of $66,000 as investors continued buying the dip. The BTC/USD pair jumped to 66,900, its highest level in over a month. It has jumped by nearly 15% from the lowest level this year.
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Bitcoin Price Jumps Amid ETF Accumulation
The BTC/USD pair has moved sideways in the past few days, helped by the ongoing accumulation by American investors. Data shows that spot Bitcoin ETFs have had close to $1 billion in assets in the last five consecutive days. These funds have now added over $500 million this month, a sign that demand among investors is rising.
This is notable because it is happening at a time when the stock market has become highly volatile, with some of the best-performing companies sliding into a bear market. As such, there is a likelihood that investors are rotating from the stock market to cryptocurrencies.
The BTC/USD pair has also jumped as the futures open interest continued rising. Data shows that its 24-hour futures open interest has jumped to over $48 billion from this month’s low of $45 billion.
The rising demand has pushed its supply in exchanges to 2.48 million from this year’s high of 2.5 million. That is a sign that demand is still there even as it remains in a bear market.
Bitcoin’s rally also happened as investors embraced a risk-on sentiment, with the stock market resuming its comeback. The Dow Jones Index soared by 370 points, while the Nasdaq 100 jumped by 325 points, even as the US-Iran war escalated, with the two sides launching strikes overnight.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has been in an uptrend in the past few weeks. It has jumped from the year-to-date low of 57,768 to the current 66,353.
The pair has already flipped the 50-day moving average from a resistance level into support. At the same time, the Stochastic Oscillator and other momentum indicators have continued rising in the past few weeks. It has also formed an inverted head-and-shoulders pattern.
Therefore, the pair will likely continue rising as bulls target the key resistance at 70,000. A drop below the key support level of 65,000 will point to more downside, potentially to 60,000.
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