The BTC/USD price rallied strongly during the American session as traders brought the drop after a few days of consolidation. Bitcoin peaked at 30,20, its highest level since June of last year. It is up more than 50% from its low this year.
Bitcoin’s convalesce happened as American bond yield surged, signaling that investors expect the Fed to hike rates further. For the first time in weeks, the 2-year yield increased to 4% while the 10-year yield increased to 3.41%.
Bitcoin increased as the US dollar index surged over 50 basis points. The index, which traces the performance of the US dollar against other currencies, increased for the third day in a row as investors reacted to high job numbers. Historically, bitcoin tends to move in the opposite direction against the US dollar.
BTC soared as the market waited for the upcoming banking earnings season starting Friday when major banks, including JPMorgan, Citigroup, and Wells Fargo, were set to release their results. Regional banks such as PNC, Park National Bank, and M&T Bank will release their results next week.
The analysts expect unpredictability in the banking sector when these companies report their results, largely due to their exposure to commercial real estate. Bitcoin has conveyed well during the banking crisis for the past few weeks.
Bitcoin also rose after data showed an increase in Bitcoin holders holding positions. This increase means that even if the coin has remained in the consolidation phase, it will not sell.
Another piece of data worth noting is the US inflation data scheduled for Wednesday. These numbers will give a better insight into what to expect at next week’s Fed meeting.
BTC/USD technical evaluation
BTC/USD rallied during the overnight session. It increased above a key resistance point at 29,378, the maximum point this year. The pair increased above the 50-day and 25-day moving averages as the MACD trended upward.
Therefore, the pair’s outlook is bullish; the next key level to watch is 31,000. A break below the support at 29,378 will abolish the bullish view.
Optimistic point of view
- Purchase of BTC/USD pair and stake profit at 31,000
- Add stop loss to 28,000
Downward trajectory point of view
- Start a sell-stop at 29,000 and take a profit at 27,000
- Add stop loss at 30,000