Bitcoin Price Prediction: BTC sets sight on $34,000
|- Bitcoin price jumps back above $34,000.
- BTC price jumped on the back of another shift in sentiment in just twenty-four hours.
- Expect to see more gains to come with futures in the green and BTC price-setting sail for $34,000.
Bitcoin (BTC) price is set to jump at least 13% as tailwinds hover over global markets. Although the background is still tainted by central bank tightening – with the Indian Reserve Bank the latest to join the RBA in implementing a a 50 bp hike – , traders are seeing the upside potential from governments slashing taxes to support living and spending patterns for households, and thus safeguarding the cash inflow into cryptocurrencies. As a result, cryptocurrencies overall are seeing their price action underpinned. BTC price, for example, did not make new lows as expected but is trading sideways and is ripe for a breakout towards $34,000, with the 55-day Simple Moving Average (SMA) as a cap on the topside for now.
BTC price has its first halt at the 55-day SMA
Bitcoin price has been left at the mercy and woes of global markets these past few days, with very choppy price action resulting. The $30,000 marker has been chopped up so much it is almost not worth using as a reference point anymore. Nonetheless, the jump above this level this morning shows how easily sentiments are shifting yet again in this trading week, as risk-on is back with a vengeance and futures are trading in the green overall, pushing morale and sentiment further into risk.
BTC price sees these tailwinds coming in and providing a counterweight to the tail risks dragging on price action for far too long. Expect to see a rally back above $32,649.28, with a slight fade to test that level for support and then a pop higher towards $34,000. Bitcoin price faces the 55-day SMA as a cap on the topside which is likely to be crucial going forward as it has not been tested since April 21 after a failed break and bull trap.
BTC/USD daily chart
Downside risk could come if sentiment shifts yet again into risk-off, with the ECB tomorrow as a key event. Markets and traders will be watching every word at the post-meeting press conference, as the ECB is set to climb out of negative rates for the first time in a decade and miscommunication would be disastrous for the EUR and USD. If Lagarde misses the mark, dollar strength could result which would create a headwind and push BTC price back towards $28,695.13 and possibly even a test of $28,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.