Bullish view
- Buy the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 92,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 100,000.
Bitcoin price bounced back after falling sharply earlier this week. The BTC/USD pair rose to over 67,000 on Thursday morning, up from this week’s low of 90,570. It has jumped by almost 100% from its August low.
Bitcoin’s rebound was likely because of rumors that Donald Trump was close to making his choice for the next Securities and Exchange Commission (SEC) chair. Media reports suggested that he was considering Paul Atkins, a crypto-friendly official to replace Gary Gensler. Other officials in consideration are Mark Uyeda, Heath Tarbet, and Robert Stebbins.
The decision for the next SEC chair is an important one because Gensler has mostly focused on legislation through enforcement. In previous statements, Trump noted that he wanted a regulator who was friendly to the industry.
Bitcoin has also reacted to positive statement from some of the most notable players in the industry. Charles Hoskinson, the founder of Cardano, predicted that the coin would jump to $500,000 as companies and governments move it to their treasuries.
Other top players in the sector like Michael Novogratz and Michael Saylor have hinted that the coin will continue soaring. Indeed, Saylor’s company, MicroStrategy, made another $5 billion purchase of coins this week.
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Bitcoin is also seeing more purchases as the number of active addresses jumped to over 938k, its highest point in months.
Looking ahead, Bitcoin price will likely experience low volume in the next few days as Americans celebrate their Thanksgiving holiday. Low volume can lead to some substantial price movements.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has been in a strong bull run in the past few months. It has jumped from below $50,000 in August to almost $100,000 today. Most recently, the pair retreated after rising to 99,700, a common scenario when an asset is about to retest a key resistance level.
Bitcoin has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a popular bullish sign. It has also formed a small morning star candlestick pattern, a popular bullish reversal sign.
The MACD indicator remains above the zero line, a positive thing. Therefore, the pair will likely continue rising as bulls target the next psychological point at 100,000. A drop below the support at 91,000 will invalidate the bullish view.
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