Bullish view
Buy the BTC/USD pair and set a take-profit at 77,000.
Add a stop-loss at 68,000.
Timeline:1-2 days
Bearish view
Sell the BTC/USD pair and set a take-profit at 68,000.
Add a stop-loss at 77,000.
Bitcoin prices rebounded and moved above the key resistance level at $70,000 as a risk-on sentiment prevailed in the market. The BTC/USD pair jumped to 71,000, up from the year-to-date low of 60,000.
Bitcoin Price Jumps After Trump's TACO Moment
The BTC/USD pair jumped as investors moved back to risky assets after the latest TACO momentum from Donald Trump. In a statement on Monday before the market opened, Trump said that the US had held talks with Iran.
He then postponed his previous warning that the US would attack Iran’s power plants and give talks a chance. Iran has denied claims that it was seeking talks with the US.
Instead, analysts believe that Trump received pressure from Gulf allies as Iran had threatened to attack their infrastructure.
The statement pushed investors to move to risky assets, which were under pressure before. For example, top indices like the Dow Jones, S&P 500, and Nasdaq indices jumped by over 1%. Crude oil tanked, with Brent and West Texas Intermediate (WTI) moving to $95 and $87, respectively.
Bitcoin also jumped as spot ETF inflows continued, possibly because of the ongoing rotation from gold to Bitcoin. Spot Bitcoin ETFs have added over $1.4 billion in assets this month, a big turnaround from the previous four months.
Bitcoin also jumped as Michael Saylor’s Strategy continued buying it last week. The company bought 1,031 coins for $76.6 million last week, bringing its holdings to over 762k.
Also, the company announced a $21 billion STRC ATM program and another $21 billion MSTR, a sign that it plans to continue buying Bitcoin in the foreseeable future.
BTC/USD Technical Analysis
The daily chart shows that Bitcoin price rebounded from the year-to-date low of $59,955 in February to the current $71,000. It has formed an ascending channel and is now slightly above the lower side.
Bitcoin has already flipped the Supertrend indicator from red to green, which often leads to more gains over time. It is also attempting to move above the 50-day Exponential Moving Average (EMA).
The coin has formed a bullish engulfing pattern, which happens when a big bullish candle follows a smaller red candle.
Therefore, the BTC/USD pair will likely continue rising as bulls target the upper side of the ascending channel at 77,000. This target is about 8.60% above the current level.