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The BTC/USD pair also jumped as MicroStrategy continued buying Bitcoin.
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- Buy the BTC/USD pair and set a take-profit at 29,000.
- Add a stop-loss at 26,000.
- Timeline: 1-2 days.
- Set a sell-stop at 26,800 and a take-profit at 26,000.
- Add a stop-loss at 29,000.
Bitcoin price held quite well on Monday as investors reacted to the actions in Washington during the weekend. The BTC/USD pair was trading at 28,000, the highest level in weeks.. It has jumped by more than 8.8% from its lowest level in September.
Bitcoin has been in a strong upward trend after crashing to below $25,000 in September. It did well even as risks to the American and global economies escalated. Inflation is bouncing back, with the headline consumer price index (CPI) soaring to 3.7% in August. Analysts believe that inflation will be a thorn in the flesh as the price of crude oil rally continues.
Bitcoin also did well as American stocks and bonds plummeted. The Dow Jones, S&P 500, and Nasdaq 100 indices have dropped sharply from their highest point this year. This sell-off gained steam after the Federal Reserve delivered an extremely hawkish pause in September.
Other risks that emerged during the month were the risks of a government shutdown and the UAW strike in the US.
Therefore, Bitcoin did well because of the application of a spot Bitcoin ETF by Franklin Templeton, a leading company with over $1.5 trillion in assets under management (AUM). The firm joins other companies like Blackrock and Fidelity that have applied for a spot ETF.
While the SEC delayed its approvals last week, analysts believe that the agency will approve the fund later this year. If this happens, BTC will likely see more inflows from institutional investors who are afraid of holding the coin.
The BTC/USD pair also jumped as MicroStrategy continued buying Bitcoin. The company, which is a major whale, bought coins worth over $147.3 million, bringing its total holdings to almost $4.7 billion.
The 4H chart shows that the BTC/USD pair has been in a bullish trend in the past few days. It has remained above the 25-period and 50-period moving averages while the Relative Strength Index (RSI) is nearing the overbought level. It is also approaching the important resistance level at 28,200, the highest point on August 31st. It has also formed an inverted head and shoulders pattern and moved above the key resistance at 27,522.
Therefore, bulls will need to move above the resistance at 29,000 to confirm the uptrend. Failure to which, the pair will validate the double-top pattern, leading to a pullback.
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