Bearish view
Sell the BTC/USD pair and set a take-profit at 73,000.
Add a stop-loss at 81,000.
Timeline: 1-3 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 81,000.
Set a take-profit at 73,000.
Bitcoin price pulled back to $76,000 on Tuesday as the recent rally lost momentum. The BTC/USD pair was trading at 76,750 as crude oil prices soared amid the ongoing US-Iran ceasefire.
Bitcoin Price Retreats as Crude Oil Jumps
The BTC/USD pair dropped sharply as crude oil prices continued rising, with Brent, the global benchmark, rising to $110 for the first time in weeks. The US benchmark rose to $97.
At the same time, US bond yields continued rising, with the ten-year yield rising to 4.34% and the two-year moving to 3.80%. This trend is happening as the contentious ceasefire continues.
Therefore, analysts believe that US consumer inflation continues rising, which may push the Consumer Price Index (CPI) higher.
The most recent data showed that the headline CPI rose to 3.3% in March and may soar to over 4% in the coming months. As such, there is a likelihood that the Federal Reserve will maintain a more hawkish tone in the near term.
The BTC/USD pair continued soaring as investors continued buying Bitcoin ETFs. Data shows that spot Bitcoin ETFs have added over $2.4 billion in assets this month, and may hit the crucial milestone of $3 billion.
BlackRock's IBIT ETF has added billions of dollars and now has over $63 billion in assets under management. All Bitcoin funds have over $102.64 billion in assets, which are equivalent to 6.60% of the market capitalization.
Bitcoin also reacted to the ongoing accumulation by Strategy and Strive. Strategy now has 818,334 coins worth over $62.8 billion, with the average cost of $75,532. Also, Strive, a company started by Vivek Ramaswamy, also bought 137 coins currently worth over $10 million.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair rose and peaked at 79,360, where it formed a small double-top pattern.
It then pulled back and moved to the key support level at 76,410, which is the highest point on March 17.
The pair has remained above the 50-day Exponential Moving Average (EMA) and the Supertrend indicator.
Therefore, the pair will likely remain inside this range in the near term. A steeper retreat may push it to the next key support level at 72,000. A move above this month’s high of 79,360 will invalidate the bearish outlook.