BTC/USD Analysis: Two-Month High
In our previous analysis of Bitcoins price (21 April), we:
identified a long-term ascending channel (marked by blue lines) and suggested that a bullish attempt to test the $90k level could occur before the end of the month.
Now, as the calendar turns to 2 May, Bitcoins price has already surged above $97k for the first time since late February.
Why is Bitcoin rising?
Positive sentiment in the cryptocurrency market is partly driven by strong earnings reports from tech giants such as Apple, released earlier this week. There is a notable correlation between BTC/USD and the Nasdaq 100 technology index (US Tech 100 mini on FXOpen).
In addition, Bitcoin's rally is being supported by the weakness of the US dollar. Amid the tariff policies of the Trump administration, the US Dollar Index fell to a three-year low by the end of April marking its worst start to the year in the indexs 40-year history.
Renowned investor Tim Draper even suggested that Bitcoin could theoretically trend towards infinity against the US dollar, citing the example of the Confederate dollars collapse during the American Civil War.
Technical Analysis of the BTC/USD Chart Today
Today, Bitcoins chart continues to exhibit bullish signals within the aforementioned ascending channel:
At the end of April, the price found a degree of equilibrium near line Q, which divides the lower half of the channel into two quarters. However, as indicated by the arrow, there are attempts to move towards the channels median line.
The price has broken above the key $92,500 level, which has acted as strong support since late 2024.
From a broader perspective, the picture suggests that the uptrend has resumed following a correction along line R. Still, the key question remains: how resilient is the current bullish sentiment? Price action near the psychological $100k level could provide crucial insights into the future direction of BTC/USD.
Read more: https://fxopen.com/blog/en/oa-btc-usd-analysis-two-month-high/
Text source: Forex Trading Blog
