The bitcoin cryptocurrency hit a two-year high, testing the $57,000 level on Tuesday amid signs of active institutional buying. The major digital currency has gained more than 10% over the past two sessions.
BTCUSD has received additional support recently due to the approval of exchange-traded funds (ETFs) in the U.S. that invest in bitcoin. Since the start of trading on January 11, $5.6 billion has been invested in these funds, indicating a growing interest in bitcoin not only among its supporters but also among the broader investor community.
The approaching supply reduction of the cryptocurrency further contributes to the optimistic sentiment in the market.
Digital tokens are rising even though investors have lowered expectations of looser monetary policy this year in the U.S., as evidenced by rising U.S. Treasury yields.
This year, bitcoin has outperformed traditional assets such as stocks and gold. The ratio of the token's price to the precious metal is at its highest level in more than two years.
Monday's positive sentiment of the U.S. traders spread to Asian markets. On Tuesday, the digital asset added 4.4%.
BTCUSD quotes are forming a new uptrend on the D1 timeframe.
In terms of wave analysis, the price is in the process of forming the fifth ascending wave on the H4 timeframe. The break through the top of the third wave at 53,985 has already taken place. This may strengthen the bullish movement in the near term. Bulls Power indicator volumes (standard values) are increasing in the positive zone, indicating the upward movement.
Signal:
Short-term prospects for BTCUSD suggest buying.
The target is at the level of 63,500.
Part of the profit should be taken near the level of 60,000.
A stop-loss could be placed at the level of 50,000.
The bullish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
