Bitcoin price jumped as investors placed bets that the coin will sustain its recovery amid the rising regulatory scrutiny in the industry.
- Buy the BTC/USD pair and set a take-profit at 30,000.
- Add a stop-loss at 27,500.
- Timeline: 1-2 days.
- Set a sell-stop at 27,950 and a take-profit at 26,000.
- Add a stop-loss at 29,000.
The BTC/USD pair bounced back as buyers targeted the year-to-date high of 28,958. The pair rose to a high of 28,370, which was higher than this week’s low of 26,524. Bitcoin has had a successful March, having risen by ~45% above the lowest level this month.
Bitcoin price jumped as investors placed bets that the coin will sustain its recovery amid the rising regulatory scrutiny in the industry. Earlier this week, American regulators announced a major lawsuit against Binance, the biggest exchange in the world.
The lawsuit by the CFTC argued that the company of offering derivatives products to clients in the United States without following the law. In a statement, the company rejected the claims and vowed to defend itself.
Further, in a report, the Financial Times said that Binance had strong ties to China that it hid for many years. The report cited internal communication documents in its possession. Therefore, these claims could intensify further crackdowns on the company as tensions with the US escalates.
Regulators are also scrutinizing other companies, including Coinbase and stablecoin issuers. Therefore, the ongoing price action means that traders believe Bitcoin and other cryptocurrencies will do just fine in the coming months.
Bitcoin’s comeback also coincided with the strong performance of American equities. The Dow Jones and Nasdaq 100 index rose by more than 0.50%. Bitcoin has a close correlation with equities. At the same time, the US dollar index rose by about 20 basis points.
The 4H chart shows that the BTC/USD pair pulled back after falling to a low of 26,586 on Wednesday. It is now approaching the key resistance level at 28,958, the highest point this week. The pair has managed to move above the 25-period and 50-period moving averages while the MACD has moved above the neutral point.
The pair moved above the Woodie pivot point at 28,000. Therefore, the BTC/USD pair will likely have a bullish breakout as buyers target the next psychological level at 30,000. This view will be confirmed if Bitcoin manages to move above the year-to-date high of 28,958. Such a move will invalidate the double-top pattern and signal that there are still buyers in the market.