Bullish view
- Buy the BTC/USD pair and set a take-profit at 71,980.
- Add a stop-loss at 67,000.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 69,000 and a take-profit at 67,000.
- Add a stop-loss at 72,000.
Bitcoin price jumped above the psychological level of $70,000 in the overnight session as sentiment in the industry improved. The BTC/USD pair was trading at 70,100 as bulls targeted last week’s high of over 72,000.
Bitcoin’s rally has accelerated after the Securities and Exchange Commission (SEC) gave its blessing for three spot Ether ETFs. These funds cannot be traded yet as the agency studies the others as letting them go online would put them at a disadvantage.
The Ether ETF approval happened a few months after the agency accepted spot Bitcoin ETFs that have been highly successful. For example, iShares Bitcoin Trust (IBIT) has become a $18 billion fund and will likely overtake the Grayscale Bitcoin Trust.
BTC/USD technical analysis
The daily chart reveals that the price of Bitcoin has moved sideways in the past few days. It has formed an inverse head and shoulders pattern, a popular bullish sign. Bitcoin has also jumped above the 50-day and 25-day Exponential Moving Averages (EMA), which have formed a bullish crossover recently.
Further, the pair has jumped above the Ichimoku cloud indicator and is nearing the neckline of the inverse H&S pattern. Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards.
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Therefore, technically, the pair’s outlook is bullish. This view will be confirmed if the price moves above the slanting neckline of the H&S pattern. If this happens, it will be just a matter of time before the pair rises to its all-time high of over 73,800.
The stop-loss of this pattern is at 65,000. A break below that level will open the possibility of the pair falling to the head section of the pattern, which is this month’s low of 57,000.
BTC/USD 4H chart analysis
The 4H chart reveals that the BTC/USD pair has staged risen sharply in the past few days. In doing this, it has formed another small inverse H&S chart pattern. It has also moved slightly above this pattern’s neckline.
Bitcoin has also jumped above the 50-period and 25-period moving averages and the key resistance at 67,275, its highest swing on April 22nd. Therefore, like in the daily chart, the pair will likely have a bullish breakout, with the initial target being at 71,973, its highest level last week. A break above that level will open the possibility of moving to the all-time high.
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