The price of bitcoin ended on Thursday as investors adopted a risk-to-sense between the ongoing trade war between the US and its top trading partners.
Bitcoin (BTC) was trading at $ 90,000 up to 15% from its lowest level this month, while American stock indices such as The Dow Jones, Nasdaq 100 and S&P 500 declined by more than 1%.
BTC has two major catalysts that can increase its price to $ 100,000 in the next few days. First, Donald Trump will host the Crypto Summit for the first time in Washington. The summit will include top industry leaders, including Ripple’s Brad Garlinghouse, Bryan Armstrong of Coinbase and Paolo Erdino of Tedhar.
The most notable result of the summit will launch a strategic bitcoin reserve by Donald Trump. Such reserves can help promote the price of bitcoin due to the size of the government’s balance sheet.
An option will be to replace bitcoin which the government keeps in the store. It is currently 198,109 coins worth more than $ 17.9 billion. Another option will be to pursue the Synthia Lumis Bill that proposes that the government buys and keeps 200,000 coins annually for five years, a step that will make sufficient demand.
AI and Crypto Caesar, David Sachs made a case for these stores, given that the US government had sold 195,000 coins in the last decade. It raised $ 366 million from these sales, which is much lower than their current price $ 17 billion.
US Nonform payroll data
On Friday, another potential catalyst for the price of bitcoin will be the US nonform payroll data. This report will provide more insight into the event of the US economy when it is facing enough headwinds.
Analysts of Wall Street hope that the NFP report shows that the economy added 159,000 jobs in February, while the unemployment rate was 4.0%. There is a possibility that the job cuts of Elon Musk will be reduced by the job expectations. An ADP report released on Wednesday revealed that the private sector added only 77,000 jobs in February.
A weak NFP report will be faster to the price of bitcoin as it can increase the possibility of cutting a higher fed rate.
Bitcoin price technical analysis
The weekly chart suggests that the price of bitcoin is indicating below after falling at a low of $ 78,100 last week. It is built above the ascending trendline that combines the lowest swings since August 5.
Bitcoin has also created two hammer patterns. A hammer candlestick consists of a long low shade and a short body and is one of the fastest inverted patterns. It is also above the 50-day moving average.
Therefore, the price of bitcoin is likely to continue to continue as bulls target major resistance levels at $ 100,000. This view will be invalid if it falls below the support of $ 80,000.
