There is a likelihood that the pair will keep rising as bulls target the next key resistance level at 47,000.
Bullish View
- Buy the BTC/USD pair and set a take-profit at 47,000.
- Add a stop-loss at 42,000.
- Timeline: 1-2 days.
Bearish View
- Set a sell-stop at 43,000 and a take-profit at 41,000.
- Add a stop-loss at 44,000.
The BTC/USD price jumped to the highest level since January 13th as the broad market sentiment improved. The pair rose to a high of 44,253, which was about 33.23% above the lowest level this year. Other cryptocurrencies like Solana, Ethereum, and Polkadot have also bounced back.
Market Sentiment
The main reason why the BTC/USD has rallied is because the overall market sentiment has improved in the past few days. This is evidenced in the overall performance of most assets. American stocks have risen in the past two straight days while the price of crude oil has jumped to the highest level in over 7 years.
This performance is partly because of the recent earnings season. According to FactSet, while Facebook and PayPal delivered weak earnings, most companies have reported strong results. Indeed, it is the fourth straight quarter in which companies have recorded over 25% earnings growth.
The performance of the stock market is important because of the close relation between the industry and cryptocurrencies. In the past few weeks, the two assets have moved in the same direction.
The BTC/USD also rose as funds continued to flow to the cryptocurrency industry. On Monday, Polygon raised $450 million from a group of investors led by Tiger Global and Softbank. The new capital raising was in the form of a token sale, meaning that these companies now hold Polygon’s MATIC.
Tiger and Softbank also partnered to invest $200 million in Aleo, a privacy-focused blockchain project. Further, Mitsubishi UFJ, the biggest bank in Japan announced that it will float a yen-pegged stablecoin to trade digital securities.
These events mean that there is a growing acceptance of the blockchain industry, which is a good thing for BTC prices.
BTC/USD Forecast
The four-hour chart shows that the BTC/USD pair has been in a strong bullish trend in the past few weeks. Along the way, the coin has jumped by over 30% fro, its lowest level this year. It has also jumped above the 25-day and 50-day moving averages while the MACD has been in an upward trend. It also seems like it has formed an inverted head and shoulders pattern.
Therefore, there is a likelihood that the pair will keep rising as bulls target the next key resistance level at 47,000. A drop below the support at 41,500 will invalidate this view.
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