Bitcoin Price News: BTC Eyes $77K as Bullish Price Pattern Forms

Bitcoin (BTC) has booked a 3% gain in the past 24 hours, and over $265 million worth of short positions have been wiped out from the futures market as cryptos started the week with a positive tone.

President Donald Trump’s hostile rhetoric has left nearly no doubt that the United States is getting ready to take some aggressive measures to reopen the Strait of Hormuz.

The price of oil surged to $114 and in the past few hours and is already nearing its local peak as geopolitical tensions continue to escalate.

However, the U.S. military’s supremacy over Iran has apparently reassured the market that this “temporary” situation might not result in a spike in inflation down the road.

The Crypto Fear and Greed Index recovered from a recent low of 25 to 38 as of this morning, nearing Neutral territory for the first time in weeks.

This is a clear sign that the market is starting to shake off this “war scare”, and that could result in the resumption of Bitcoin’s relief rally above $70,000 and possibly higher.

Bitcoin’s Supply in Profit Recovers to 59%

Trading volumes doubled in the past 24 hours as bulls seem to be aiming to break this psychological barrier. If they pull that off, liquidation data suggests that a short squeeze could push BTC back to its late February highs in the near term.

Meanwhile, Bitcoin’s on-chain data shows that the percentage of BTC’s supply in profit recently neared 60% after briefly dipping to 52% in late February.

During previous bearish cycles, buying BTC once this metric drops below 50% has yielded positive results for investors.

Hence, if BTC dips further as a result of this geopolitical turmoil, a historical buying opportunity may knock on investors’ doorsteps once again.

BTC Seems Headed to $77,000 After Key Trend Line Holds

Heading to the charts, the daily price action shows that an ascending triangle pattern has formed as BTC has made multiple consecutive higher lows in the past few weeks.

This is typically a bullish pattern that suggests that buying pressure is rising. We expect that the continuation of this uptrend could push BTC to $77,000 in the near term, or possibly higher if the market aims to retest the 200-day exponential moving average (EMA).

Moreover, the Relative Strength Index (RSI) has emerged once again above the mid-line, indicating that bullish momentum is accelerating. We would like to see the oscillator climbing past 60 for a confirmed “buy” signal.

If the 200-day EMA is flipped, that would mean a shift in the prevailing trend and could easily result in a move toward a higher target of $85,000 for BTC in the near term. From a technical standpoint, this is not a bad time to buy if you are a buy-and-hold investor.

Buy Signal Emerges and Offers Interesting Trading Opportunity

Heading to a lower time frame, the 4-hour chart shows that a buy signal just popped up after BTC bounced off its trend line support.

These signals track specific candle patterns that are accompanied by above-average trading volumes. We believe that this indicates institutional participation in the price move.

At current levels, a long position offers a decent 2x risk-reward ratio if the stop price is set below BTC’s recent lows. However, securing a lower entry could dramatically improve that ratio. Hence, day traders may benefit from having some patience before jumping on board with this trade.