Buying Bitcoin amid financial markets volatility

Bitcoin experienced a lot of volatility on Monday, with the daily price change reaching 10.5%. The closing price amounted to 101840.72. On Tuesday, the cryptocurrency opened at 101803.27 and is trading at 100657.37 at the time of writing this forecast.

The end of Bitcoin purchase streak by MicroStrategy, one of the largest institutional investors, could have a negative impact on the market. For 12 weeks the company has been actively increasing its BTC position, which would normally be taken as a positive signal, now the company has stopped doing so. However, the temporary suspension of purchases has not yet had a critical impact on the Bitcoin price due to other macroeconomic factors.

Analysts remain optimistic about Bitcoin's future. Mizuho Securities forecasts price growth of 30% over three years, based on an improving investment climate and the growing interest of government agencies in cryptocurrency technologies. 

Legislation in Utah to create a strategic Bitcoin reserve could set an important precedent for the US. This decision points to a growing recognition of cryptocurrencies as a potential asset.

The Bitcoin rate is also dependent on events in the foreign exchange market. The decline in the dollar after US President Donald Trump imposed tariffs could lead to a stronger Bitcoin. Retaliatory measures by trading partners and fears of shrinking global trade are reinforcing this trend. Despite this, Wall Street banks predict the dollar to strengthen against the currencies of countries affected by the tariffs. Banks view it as a safe-haven asset in the face of trade uncertainty.  Nevertheless, even a temporary decline in the dollar could make Bitcoin more appealing to investors looking for alternative assets amid volatility in traditional financial markets. 

Technical analysis shows the continuation of the fall with the possibility of recovery at the level of 104244.00. MACD indicator shows weakening of bullish impulse on the market. RSI indicator shows weakening of selling pressure and absence of a definite trend on the market. It is quite possible that consolidation has come.

Current Recommendation:

Buy BTCUSD at the current price. Take profit — 104244.00. A Stop-loss — 91243.19.