Bullish view
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Buy the BTC/USD pair and set a take-profit at 85,000.
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Add a stop-loss at 75,000.
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Timeline: 1-2 days.
Bearish view
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Sell the BTC/USD pair and set a take-profit at 75,000.
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Add a stop-loss at 85,000.
Bitcoin price held steady above the important resistance level at $80,000 as the recent momentum continued. The BTC/USD pair was trading at 80,500 on Tuesday, its highest point since January 31st. It has risen substantially from the lowest level this year.
Bitcoin Price Steady Despite Rising Geopolitical Tensions
The BTC/USD pair continued rising despite the rising geopolitical tensions between the US and Iran. Iran launched a drone attack against the United Arab Emirates (UAE) leading to higher crude oil prices, which will lead to higher inflation in the US and other countries.
Bitcoin has done well because of the rising hopes that the Senate had reached a deal on the CLARITY Act, meaning that it may be passed later this year. CLARITY will be important as it will simplify how the crypto industry is regulated. It will be the second major deal after the GENIUS Act that passes last year.
Bitcoin price has also jumped ahead to the closely watched Consensus event in Miami, where top officials in the industry will gather this week. Some to the top companies whose leaders will talk will be Binance, Kraken, and Coinbase.
American investors have continued buying Bitcoin ETFs. Their inflows jumped by over $2 billion last month, much higher than the $1.3 billion they added in the previous month. These inflows have continued this month.
Looking ahead, in addition to geopolitics, Bitcoin will react to the upcoming macro events from the United States, including the upcoming non-farm payrolls (NFP) report on Friday this week.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair has jumped in the past few weeks, moving from a low of 60,000 in February to over 80,000 today. It is attempting to move above the upper side of the ascending channel.
The pair has moved above the 50-day and 100-day Exponential Moving Averages (EMA) and the 23.6% Fibonacci retracement level. Also, the two lines of the Percentage Price Oscillator (PPO) have jumped above the zero line. It remains above the Supertrend indicator.
Therefore, the pair will likely continue rising as bulls target the 38.2% Fibonacci retracement level at 85,000. A move above that level will point to more gains, potentially to the 50% retracement at 92,000.
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.
