BTC/USD Analysis: Bulls on the Offensive
In our previous analysis of Bitcoins price (14 April), we:
constructed a long-term ascending channel (marked with blue lines);
highlighted resistance level R, suggesting that the bulls were seizing the initiative in an attempt to pave the way for a continuation of the long-term trend on the BTC/USD chart.
As we can see, Bitcoin is now trading at its highest level in nearly three weeks. Moreover, the bulls are close to reclaiming a key high from early April. Market sentiment is being buoyed, in part, by comments from Michael Saylor, who stated that MicroStrategy is prepared to continue accumulating Bitcoin. Following a recent purchase of more than 3,000 coins, the company now holds over 530,000 BTC on its balance sheet.
Technical Analysis of the BTC/USD Chart Today
Currently, Bitcoin is trading above the R resistance line, having risen on a strong bullish candle a clear indication of demand outweighing supply. This price action reinforces the relevance of the long-term ascending channel, making the argument stronger that the bearish breakout attempt (marked with an arrow) in early April was a false move.
Its also worth noting that the psychological level of $80K is acting as strong support since late February, BTC has dipped below this level several times but has failed to establish itself there. A bullish attempt to challenge the $90K level before the end of the month cannot be ruled out.
Will Bitcoin continue on a bullish path? Much will depend on the fundamental backdrop particularly factors influencing the US dollars performance. Notably, the US Dollar Index futures are trading at their lowest level since March 2022.
Read more: https://fxopen.com/blog/en/oa-btc-usd-analysis-bulls-on-the-offensive/
Text source: Forex Trading Blog
