This bullish set up in Bitcoin price can yield $3,000 profits

  • Bitcoin price gets pumped with 5% gains already for this week.
  • BTC price has 8% on the docket with bulls overpowering bears.
  • Expect to see BTC price hit a technical cap of around $45,000.

Bitcoin (BTC) price is being pumped by bulls that have been outweighing bears since Easter Monday. Bitcoin bulls used the low volume trading on that day to squeeze out plenty of stop losses and, in return, saw BTC price scaled up significantly. Intraday, BTC price is set to break above the 55-day Simple Moving Average (SMA) that has been keeping price action muted for over a week and could be used as a launching platform for a $3,000 jump towards $45,000 and the red descending trendline from March.

BTC price set to break above a difficult technical hurdle

Bitcoin price sees momentum building for a break above $42,000 at which point it will pierce through the 55-day SMA that has kept price action muted to the downside for almost a fortnight. Bitcoin bulls are getting help from the dollar index slipping, dollar strength fading, and this tilting the balance in favour of Bitcoin gaining value. Add to that the low volume on Easter Monday, and you have the explanation for why BTC price is trading 5% higher in just two trading days.

BTC price has more good news in its bag, as momentum is building for a break above the 55-day SMA from there, quite some ground can be covered without any significant hurdles before hitting $44,000 or even $45,000 for that matter. Around that area, the red descending trend line will start to play up, and bears will be in the market defending that technical cap with their life. Without predicting any outcome if the descending trend line breaks, expect at least a test of that trend line, which will translate into a 13% gain or $5,000 added to the portfolio for bulls that got in at the $40,000 level, and there is still room to join now.

BTC/USD  daily chart

Already marked up on the chart is the blue dashed line that could reject a bullish advance at around $41,756 with the 55-day SMA nearby, also  refraining bulls from making more profit. This could trigger profit-taking and investors closing out their short-term positions, and prove to be a setback in a broad fade trade. In such a move, expect to see BTC price drop below $39,780, forfeiting again that important $40,000 level, on its way towards $38,075.