Bullish view
- Buy the BTC/USD pair and set a take-profit at 113,000.
- Add a stop-loss at 100,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 113,000.
The BTC/USD pair remains under pressure even as more companies continued to buy Bitcoin and ETF inflows rose. Bitcoin price dropped from last week’s high of $111,900 to $107,000.
More companies are buying Bitcoin
The BTC/USD pair retreated after more companies added Bitcoin into their treasuries. GameStop, the struggling video game retailer, acquired over 4,000 coins as its main business faces existential risks.
Trump Media, the parent of TruthSocial, is raising $2.5 billion to buy Bitcoin as its social media company struggles even with Donald Trump in the White House.
Strategy, formerly known as MicroStrategy, bought over 4,000 coins last week, bringing its total holdings to over 580,000. Its tokens are now worth over $60 billion, and the company plans to raise $84 billion to continue the purchases.
At the same time, investors continue to buy spot Bitcoin ETFs, with the cumulative inflows rising to over $45 billion.
Meanwhile, more companies are getting interested in the industry. BlackRock, the biggest asset manager globally, is considering taking a 10% stake in Circle as it goes public. Circle owns USDC, the second-biggest stablecoin in the crypto industry.
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Bitcoin’s surge is happening at a time when data is showing that supply on exchanges and over-the-counter venues continues falling. These demand and supply dynamics mean that the coin may continue rising in the coming days.
The BTC/USD pair also reacted mildly to the latest minutes of the Federal Open Market Committee (FOMC). These minutes showed that officials prefer a wait-and-see approach before cutting interest rates.
BTC/USD technical analysis
The daily chart shows that the BTC/USD pair has been in a slow uptrend since April when it bottomed at 74,457. It has continued making a series of higher highs and higher lows, with investors buying every dip.
Bitcoin is now hovering at the upper side of the cup-and-handle pattern, a popular bullish continuation sign. It is in the process of forming the handle section of this pattern.
Bitcoin remains above the 50-day and 100-day moving averages, meaning that the bullish trend is continuing. Therefore, the BTC/USD pair will likely continue rising, with the next point to watch being at 115,000. A drop below the support at 100,000 will invalidate the bullish outlook.
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