(MENAFN- Daily Forex) Bullish view

• Buy the BTC/USD pair and set a take-profit at 110,000.
• Add a stop-loss at 100,000.
• Timeline: 1-2 days.

Bearish view

• Sell the BTC/USD pair and set a take-profit at 100,000.
• Add a stop-loss at 110,000.

Bitcoin price remained in a tight range on Wednesday after the US passed Donald Trump's spending bill. The BTC/USD pair was trading at 105,550, lower than this week's high of 108,495.

Bitcoin is reacting to the ongoing demand from the United States. Data shows that spot Bitcoin ETFs have added over $200 million in assets this week, a trend that may continue this week.

The cumulative net inflow exceeded $48.97 billion, and is nearing the psychological point at $50 billion. The same is happening in the Ethereum market, where the spot ETFs have added over $4.2 billion in assets since September last year.

The Bitcoin price also reacted to the passage of the“One Big Beautiful Bill,” which included $4.5 trillion in tax cuts and $1.2 trillion in spending cuts.

Analysts believe that the bill is bullish for Bitcoin because it will lead to more public debt in the US. Recent data indicate that the US has over $36.5 trillion in debt, which is expected to continue rising in the coming years.

Bitcoin is seen as a hedge against the rising public debt because of its tokenomics. It has a supply cap of 21 million, and most of them have been mined already. At the same time, the supply of Bitcoin on exchanges has crashed to the lowest level in over seven years.

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Bitcoin also reacted to a statement by Jerome Powell, who hinted that the Federal Reserve may start cutting rates as early as in July. Such a move would be bullish for Bitcoin and other risky assets.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily chart shows that the BTC/USD pair has pulled back in the past few days. It dropped from a high of 111,855 on May 23rd to the current 105,500.

The pair has formed a bullish flag pattern, comprising of a vertical line and a descending channel. This pattern is one of the most bullish patterns in technical analysis

Bitcoin has also formed a cup-and-handle pattern, a highly bullish patterns. It has also remained above the 50-day and 25-day Exponential Moving Averages (EMA).

Therefore, the pair will likely have a strong bullish breakout, with the next point to watch being at the all-time high of 111,855. A drop below the support at 100,000 will invalidate the bullish view.

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