Bullish view
Buy the BTC/USD pair and set a take-profit at 85,000.
Add a stop-loss at 75,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 85,000.
Bitcoin price wavered above the crucial resistance level of $80,000 as demand for the coin continued rose. The BTC/USD pair was trading at 80,400, a few points below the crucial resistance level of 82,135.
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Bitcoin Rising Despite Risks
The BTC/USD pair has jumped despite the rising risks in the market. One of the risks came from the Federal Reserve, which decided to hike interest rates by 0.25% in a unanimous vote. Officials hinted that they will deliver more hikes this year to combat the elevated inflation.
The other risk is coming from the Middle East, where the crisis between the US and Iran escalated. Most notably, Saudi Arabia and Houthis continued their fighting over the weekend. These events suggest that oil prices will remain at an elevated level for longer than expected.
There is also a risk that crude oil prices have diverged from refined products, with diesel trading at the highest level on record. Higher diesel prices lead to more inflation because of its role in the transportation industry.
Meanwhile, Bitcoin steadied, even after the CLARITY Act failed to advance in the Senate. This act would have tweaked how cryptocurrencies are regulated, with most of the work being done by the CFTC. Still, most analysts believe that the CLARITY Act will not have an impact on the coin.
The BTC/USD pair is also reacting to the rising ETF inflows. Data shows that spot Bitcoin ETF inflows jumped by $433 million on Friday, higher than the $159 million they added a day earlier. These funds have had net inflows of over $313 million, a sign that investors expect the price to keep rising.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has some solid technicals. It has formed a bullish flag pattern, which is made up of a vertical line and a descending channel. This pattern normally leads to a strong bullish breakout over time.
Bitcoin has held steady above the 50-day moving average and the Supertrend indicator. Also, it is hovering near the crucial resistance level of 82,135, its highest level in May this year.
The path of the least resistance for the coin is bullish, with the next important level to watch being at 90,000. A drop below the 50-day moving average of 74,483 will invalidate the bullish outlook.
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