Bullish view
- Buy the BTC/USD pair and set a take-profit at 95,000.
- Add a stop-loss at 80,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 80,000.
- Add a stop-loss at 95,000.
The BTC/USD pair bounced back and moved above the resistance level at 90,000 after Donald Trump paused auto tariffs for a month. Bitcoin price rose to over $90,000, up from this month’s low of $78,365.
The BTC/USD pair rebound coincided with the performance of American equities. The Dow Jones index jumped by over 500 points, while the Nasdaq 100 and S&P 500 surged by 260 and 65 points, respectively.
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Trump decided to pause auto tariffs until April 2 when the government will launch reciprocal tariffs on foreign countries. Analysts anticipate that Trump will ultimately reach agreements with Canada and Mexico on trade because of the impact on the US economy.
The BTC/USD pair rose as US bond yields continued falling after the weak private payrolls data. According to ADP, the economy created just 77k jobs in February, much lower than the median estimate of 141,000.
The weak jobs report means that the Federal Reserve will likely be forced to intervene in the market this year. A good evidence of this is the falling bond yields, which have sunk to their lowest levels in months. Bitcoin often does well when the Federal Reserve is cuttng interest rates.
The BTC/USD pair rally has also coincided with the ongoing US dollar crash. The closely-watched US dollar index has plunged this week, moving to $104.35 from the year-to-date high of $110. This drop is happening as hopes that the Fed will deliver three rate cuts later this year.
BTC/USD technical analysis
The daily chart shows that the BTC/USD pair bottomed at 78,365 last week, and then bounced back to over 90,000 today. It has jumped above the key resistance level at 88,970, the lowest swing on January 13.
The BTC/USD pair is approaching the first support of the Andrew’s pitchfork tool, while the money flow index has pointed upwards. Therefore, Bitcoin price will likely continue rising as bulls target the next psychological point at $95,000. A drop below the support level at 81,620, the lowest point on Monday, will invalidate the bullish view and point to more downside.
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