- Bitcoin (BTC) has been predicted to stage a bullish reversal to a new high as its MACD shows a bullish crossover.
- Analysts believe that this could be fueled by the rising Bitcoin adoption as MicroStrategy plans to accumulate more.
Bitcoin (BTC) has successfully overturned its recent bearish trend to a bullish one, surging by 1.35% in the last 24 hours, 1.65% in the last seven days, 5% in the last 30 days, and 23% in the last 90 days.
According to our market data, the asset is currently trading at $105k as it attempts to break a crucial psychological level at $106k. Meanwhile, the daily trading volume does not support this trend as it declines by 30%, with $43 billion changing hands at press time.
The ongoing market behaviour occurs amidst the backdrop of the more-than-expected US job data. According to reports, 139,000 jobs were added in May, surpassing the 125,000 forecasted by analysts. Market experts believe that this kills the hope of a possible rate cut and an easing monetary policy by the Federal Reserve.
While Fed Chair Jerome Powell has pledged to make decisions based on available data, U.S. President Donald Trump keeps calling for a 1% rate cut to rekindle confidence in the economy.
Powell Speaks on Rate Cut, Bitcoin Price Analysis
Speaking at the Economic Club of Chicago, Powell explained that the Federal Reserve has the responsibility to deliver on its dual mandate – managing inflation and employment. According to him, the tariff policies of the present administration could complicate the goal of the Central Bank.
As indicated in our previous news story, Trump, however, believes that Powell is “too late and wrong”. In our previous update, the Bank of America (BOA) was also highlighted to have predicted four rate cuts this year.
With the ongoing macroeconomic conditions, analysts have hinted that Bitcoin is likely forming a “liquidity trap”. Long positions between $99,000 and $102,000 have also been spotted, and could trigger a serious pullback.
Looking at its market data, we found that the asset has formed higher lows from the recent rebound, sending the price towards a key descending trendline.
Meanwhile, its Moving Average Convergence/Divergence (MACD) is showing a bullish crossover as it currently trends above the 50-period EMA on the 2-hour chart. This potential bullish formation could send the price above the $105,000 and $106,300 resistance range.
According to our recent analysis, the asset could likely hit $126k once it breaks the $111k level. Technically, this could be fueled by the rising institutional adoption as MicroStrategy announces the launch of a $1 billion stock offering to expand its Bitcoin holdings. As detailed in our earlier discussion, MicroStrategy holds an additional 70,816 BTC, bringing its total holdings to $54.5 billion.
Japanese Investment firm Metaplanet has also declared its intention to raise $50 million through a “private placement of zero-interest bonds” to acquire more Bitcoin, as noted in our recent blog post. Prior to that, the company acquired 1,004 BTC, marking one of its largest purchases to date.
