Bullish view
Buy the BTC/USD pair and set a take-profit at 65,000.
Add a stop-loss at 63,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 63,000.
Add a stop-loss at 65,000.
The BTC/USD pair rose to 63,813 on Tuesday as traders embraced a risk-on sentiment as the month started. Bitcoin rose as crude oil prices eased a bit, while ETF inflows jumped.
Risky assets did well on Monday, with the Dow Jones jumped by 693 points. The S&P 500 and Nasdaq 100 indices rose by 110 and 540 points, respectively, and are slowly nearing their all-time highs.
At the same time, crude oil prices dropped after President Donald Trump halted his attacks against Iran during the weekend. Media reports suggested that he was planning an attack against key Iranian infrastructure like desalination and power plants, a move that would have led to an escalation.
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The BTC/USD pair rose as investors continued buying spot Bitcoin ETFs. Data shows that these funds added over $170 million on Monday after suffering a $265 million a day before. BlackRock’s IBIT added $111 million in assets, while Fidelity’s FBTC and Franklin’s EZBC added $9.23 million and $6.6 million, respectively.
Bitcoin also rose slightly even after Strategy announced that it sold Bitcoin last week. It sold coins worth over $100 million in its bid to boost its balance sheet after its preferred stocks tumbled below par in May. Bitcoin has reacted mildly to these sales because the company has already telegraphed them.
Meanwhile, traders are reacting to news that the CLARITY Act may receive a vote in the Senate before it adjourns this week.
BTC/USD Technical Analysis
The four-hour chart shows that the BTC/USD pair bounced back, moving from a low of 62,200 last week to the current 63,960. It has now moved slightly above the 50-period Exponential Moving Average (EMA).
The pair has also formed a descending channel and is nearing its upper side. A break above that channel will point to more gains, potentially to 65,000 in the near term.
However, a closer look shows that Bitcoin has formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis. This pattern suggests that the pair may retreat, potentially to last week’s low of 62,000.
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