Bitcoin Bears Looking for A break Below 8,310
The Bitcoin price surge is continuing ahead of the important listing by Coinbase that is scheduled for today. The BTC is trading at $64,480, which is an all-time high and more than $4,000 above its lowest level yesterday.
What happened: The BTC price has rebounded as investors react to the upcoming direct listing by Coinbase. Like Spotify and Asana, the company has avoided taking the Initial Public Offering (IPO) route. It has went with a direct listing, which is known for its cost-efficiency and the fact that existing shareholders can sell shares right away.
The Bitcoin price is also rising because of the inflation numbers that were published yesterday. Data by the Labor Department showed that the headline consumer price index (CPI) rose by 2.6% in March while core CPI rose by 1.6%. While inflation is picking up, analysts believe that the reasons are temporary. Furthermore, gas prices will likely fall in line with the falling oil prices.
Also, the logistics challenge in the ports will soon change and the impacts of the $1.9 trillion stimulus package will soon fade. Therefore, bond yields dropped as investors ruled out rate hikes by the Federal Reserve. Lower rates are usually bullish for Bitcoin prices.
On Friday, I predicted that the Bitcoin prices would soon soar to $65,000 based on the ascending triangle pattern that has been forming. While this prediction did not happen as I predicted during the weekend, it seems to be happening now. The pair is just a few points below where I pointed.
Therefore, after breaking out higher, in my view, the bullish trend will continue as bulls start thinking about $70,000. This will likely happen this week. However, we should not rule out a small pullback as some bulls take profit. Also, the buy the news, sell the rumours situation could happen.
