Bitcoin Price Prediction: BTC sets sight on $34,000

Bitcoin (BTC) price is set to jump at least 13% as tailwinds hover over global markets. Although the background is still tainted by central bank tightening – with the Indian Reserve Bank the latest to join the RBA in implementing a a 50 bp hike – , traders are seeing the upside potential from governments slashing taxes to support living and spending patterns for households, and thus safeguarding the cash inflow into cryptocurrencies. As a result, cryptocurrencies overall are seeing their price action underpinned. BTC price, for example, did not make new lows as expected but is trading sideways and is ripe for a breakout towards $34,000, with the 55-day Simple Moving Average (SMA) as a cap on the topside for now. 

BTC price has its first halt at the 55-day SMA

Bitcoin price has been left at the mercy and woes of global markets these past few days, with very choppy price action resulting. The $30,000 marker has been chopped up so much it is almost not worth using as a reference point anymore. Nonetheless, the jump above this level this morning shows how easily sentiments are shifting yet again in this trading week, as risk-on is back with a vengeance and futures are trading in the green overall, pushing morale and sentiment further into risk.

BTC price sees these tailwinds coming in and providing a counterweight to the tail risks dragging on price action for far too long. Expect to see a rally back above $32,649.28, with a slight fade to test that level for support and then a pop higher towards $34,000. Bitcoin price faces the 55-day SMA as a cap on the topside which is likely to be crucial going forward as it has not been tested since April 21 after a failed break and bull trap.

BTC/USD daily chart

Downside risk could come if sentiment shifts yet again into risk-off, with the ECB tomorrow as a key event. Markets and traders will be watching every word at the post-meeting press conference, as the ECB is set to climb out of negative rates for the first time in a decade and miscommunication would be disastrous for the EUR and USD. If Lagarde misses the mark, dollar strength could result which would create a headwind and push BTC price back towards $28,695.13 and possibly even a test of $28,000.