Bullish view
Buy the BTC/USD pair and set a take-profit at 85,000.
Add a stop-loss at 76,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 76,000.
Add a stop-loss at 85,000.
Bitcoin continued its recent bullish breakout, reaching its highest level since May 15 this year. The BTC/USD pair jumped to 80,372, up sharply from the year-to-date low of 57,662.
Bitcoin Demand Continues Rising
The BTC/USD pair has performed well over the past few days, aided by the ongoing rally in the crypto market. Most coins, including Ethereum, XRP, and Solana have all jumped in the past few days.
Bitcoin is also benefiting from the ongoing ETF inflows. Data shows that spot Bitcoin ETFs added over $337 million in assets on Monday, the sixth consecutive day of inflows. These funds added over $1.9 billion last week, with this month’s inflows soaring to $2.7 billion, the best month this year.
Spot Bitcoin ETFs have had over $54 billion this year, bringing their net assets to over $98 billion. These inflows are driven by companies such as BlackRock, Fidelity, Grayscale, and Bitwise.
Bitcoin has also benefited from the fact that Strategy has not sold its Bitcoin holdings in the past few weeks. Instead, the company raised cash by diluting its shareholders. Strive, a company backed by Vivek Ramaswamy, bought more coins last week.
Bitcoin has held steady as investors wait for the upcoming statement from Kevin Warsh at the Jackson Hole Symposium. His statement will provide signals on what to expect from the Federal Reserve later this year.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair remained inside a narrow range in the past few months. It spent that period inside the support and resistance levels of 57662 and 66,875. This consolidation happened as investors rotated to the booming stock market.
Bitcoin then staged a strong comeback and crossed the important resistance level of $80,000. This week’s breakout happened after forming a small bullish flag pattern, a common continuation sign. It has remained above the 50-day Exponential Moving Average (EMA).
The Relative Strength Index (RSI) has continued rising, moving to a high of 83. Therefore, the path of the least resistance for Bitcoin is upward, with the next key target to watch being at 85,000. A drop below the support level of 76,000 will invalidate the bullish outlook.
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