Bullish view
- Buy the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 85,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 85,000.
- Add a stop-loss at 90,000.
The BTC/USD pair continued rising even as Wall Street stocks plunged. Bitcoin surged to a high of $88,420, its highest level since April 2nd. It has jumped by over 17% from its lowest swing this month.
Bitcoin has held steady this month as investors assess whether Bitcoin is a safe haven asset now since it is doing better than US equities. It has dropped by less than 7% this year, while top US indices like the S&P 500 and Nasdaq 100 have moved into a technical correction.
These indices dropped by almost 3% on Monday, continuing their sell-off under Trump that has erased trillions of dollars in value.
Bitcoin is attempting to mirror the performance of gold, which has jumped to a record high. The current price is because Trump has continued to criticize Jerom Powell, the Fed Chair he appointed in his first term.
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He has put pressure on him to cut interest rates, in a bid to boost the economy and the stock market. Powell, in his part, has insisted that he will not resign or yield to pressure. Instead, he has signaled that the Fed will be data-dependent and only cut rates when it feels that inflation has dropped to 2%.
Some analysts believe that Bitcoin is a safe haven asset because of its tokenomics. Unlike the US dollar, Bitcoin has a limited supply and its mining cannot be influenced by external factors.
BTC/USD technical analysis
The eight-hour chart shows that the BTC/USD pair bottomed at 74,323 earlier this month when Trump implemented his Liberation Day tariffs. It peaked at 88,420 on Monday as it remained above the 50-period and 100-period moving averages.
The pair has moved above the upper side of the bullish pennant chart pattern, a popular bullish continuation sign. Other oscillators like the MACD and the Percentage Price Oscillator (PPO) have continued rising.
Therefore, the pair will likely keep rising as bulls target the next key resistance level at 90,000. A move above that level will be a victory for bulls and will push it to the psychological point at 95,000.
The alternative scenario is where the token drops and retests the upper side of the pennant pattern around the 85,000 level.
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