BTCUSD breaks out of downward channel and reinforces upward scenario with target at 98,200

The BTCUSD exchange rate has risen to its highest level since Donald Trump announced the tariffs in early April. The cryptocurrency’s direction is supported by the dollar weakening, driven by renewed concerns over the US President’s attempts to remove Federal Reserve Chairman Jerome Powell.   

The leading cryptocurrency’s market capitalization added about 1.5% in morning trading. The gains have practically offset any losses suffered since Trump's April 2 announcement of reciprocal tariffs that have destabilized global markets.

The technical analysis of BTCUSD on the daily timeframe (D1) points to a breakout of the downtrend, the asset has been in since late January.

On the 4-hour timeframe (H4), the wave structure points to the third ascending wave development. After breaking the top of the first wave near 86,200, the price is strengthening upwards. Breaking through resistance at 88,000 confirms the presence of buying momentum and opens the way to the next targets around the Fibonacci extension levels of 161.8% and 200%.

The candlestick analysis reveals a series of confidently rising candlesticks, indicating a steady interest on the part of buyers. The bullish breakout pattern is confirmed by the direction and shape of candlesticks.

The chart of the Moving Average of Oscillator (12, 26, 9) depicts consistent positive growth, confirming the development of an uptrend. There is no divergence, which further supports the current trend.

While the pair is above 86,200, the base case scenario suggests a continuation of the upward move. In case of a pullback below 86,200 and a break of support at 84,560, a corrective scenario with a return to the consolidation range is possible.

Short-term prospects for BTCUSD suggest a decline with the target of 98,200.00. Part of the profit should be taken near the level of 93,650. A Stop loss could be set at 81,200.00.

Since the bullish scenario is short-term, the trading volume should not exceed 2% of your total balance to reduce risks.