Bitcoin BTCUSD
The Bitcoin price has risen by about 15% in the past few days and the next two days could be crucial. The BTC is trading at $49,150, which is slightly below yesterday’s high of $52,692. This brings its total market cap to more than $926 billion.
What happened: After dropping sharply last week, the Bitcoin price has been attempting a comeback. This trend was derailed yesterday when ADP published relatively weak economic numbers. The company said that the American economy added just 117k jobs in March, which led to a small increase in US Treasury yields. This performance was relatively muted as investors wait for the official jobs numbers set for tomorrow.
Why it matters: If the official jobs numbers disappoint, it could put more pressure for the Senate to pass the $1.9 trillion stimulus package. Already, there are indications that Democrats will pass it since Biden has agreed on who can receive the $1,500 stimulus check.
In the immediate term, a stimulus package could be good for Bitcoin prices. Furthermore, some recipients will use it to buy BTC. However, in the long-term, the price could come under pressure as the Fed starts to tighten.
A closer look at the three-hour chart shows that an important pattern is emerging. As you can see in pink, the Bitcoin price is forming an inverted head and shoulders pattern. It is currently forming the right shoulder. In technical analysis, this formation is usually bullish.
Therefore, in the near term, the BTC/USD price may drop to about $46,000 and then bounce back. If this happens, it will raise the possibility of the price retesting its all-time high at $58,300. On the flip side, another retest of last week’s low at $42,632 will invalidate this trend.
