Bullish view
- Buy the BTC/USD pair and set a take-profit at 99,000.
- Add a stop-loss at 88,800.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 88,800.
- Add a stop-loss at 99,000.
Bitcoin price staged a strong rally this week, reaching a high of $94,587, its highest level since February 24. The BTC/USD pair jumped to a high of 94,587, up by 26% from its lowest level point this month.
The BTC/USD pair has continued its strong rally, as demand for the coin has surged. Data show that spot Bitcoin ETFs have continued to have substantial inflows. Inflows have risen by over $1.5 billion this week as investors embraced its role as a safe-haven asset.
Bitcoin’s rally coincided with the rebound of gold and other risky assets. The Dow Jones and Nasdaq 100 indices rose by more than 1%, while gold moved to its highest level on record.
These assets rallied after Donald Trump announced that he was not planning to fire Jerome Powell, the head of the Federal Reserve. Such a move would have led to more volatility in the financial market.
Trump also signaled that he was prepared to ink a deal with China on trade. Such a deal would lower tariffs from the current 145%.
BTC/USD technical analysis
The daily chart shows that Bitcoin price has been in a recovery mode this week. After bottoming at $74,345 on April 9, it jumped to a high of 94,000 this week. It has soared to its highest level in over a month.
The pair has moved above the important resistance at 88,827, its highest swing on March 26. This level corresponded to the neckline of the double bottom at 74,345. It has also surpassed the 50-day moving average, a sign that bulls are currently in control.
Oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued rising. It has moved to the 23.6% Fibonacci Retracement level at 94,515.
Therefore, the pair will likely continue rising as bulls target the next key resistance level at 100,000. A drop below the support at 88,000 will invalidate the bullish outlook.
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