BTC/USD Signal Today 05/02: Bullish Signal (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the BTC/USD pair and set a take-profit at 109,000.
• Add a stop-loss at 95,000.
• Timeline: 1-2 days.

Bearish view

• Set a sell-stop at 99,000 and a take-profit at 95,000.
• Add a stop-loss at 108,000.

Bitcoin price remained in a consolidation phase on Wednesday morning, continuing a trend that has been going on since November last year. The BTC/USD pair was trading at 100,000, up by almost 10% from the lowest level this month.

Bitcoin's performance has mirrored that of American equities. The Dow Jones, S&P 500, and Nasdaq 100 indices rose slightly on Monday as traders reflected on the trade tariff issues.

The US has already reached a deal with Mexico and Canada in which they will continue negotiations in the coming weeks. Tariffs will go into effect next month if the two countries don't reach an agreement.

These issues impact Bitcoin because of the impact on inflation and monetary policy. Tariffs lead to higher inflation, which forces the Fed to hike interest rates. Higher rates lead to higher bond yields, which in turn lead to a rotation from risky assets like Bitcoin and stocks.

The BTC/USD pair wavered after David Sacks, the artificial intelligence (AI) and crypto czar in the Donald Trump administration, discussed the key priorities. The administration will work towards enacting friendly regulations as it seeks to become the industry leader.

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The daily chart shows that the BTC/USD pair formed an inverse head and shoulders pattern in 2024, which explains why it has soared to a record high. Most recently, the pair has been forming a bullish flag chart pattern comprising a vertical line and a rectangle pattern.

It has moved in between that rectangle. In this case, a bullish breakout will happen when it moves above its upper side.

Bitcoin has moved above the 100-day moving average and the Ichimoku cloud, which is a bullish sign. Also, it has formed a hammer candlestick pattern, a bullish reversal signal.

Therefore, the BTC/USD pair will likely have a bullish breakout, with the next level to watch being at 110,000. The bullish view will become invalid if it drops below the lower side of the flag at around 91,00. A drop below that level will open the possibility of it dropping to the psychological point at 80,000.

EURUSD Chart by TradingView

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