BTC Bulls to Target $31,000 on US Inflation and Corporate Earnings

Key Insights:

• On Thursday, BTC extended the winning streak to three sessions, rising by 3.70% to end the day at $29,479.
• US corporate earnings and the NASDAQ Composite Index delivered a breakout session.
• The technical indicators turned bullish, signaling a breakout from $30,000.

On Thursday, bitcoin (BTC) rose by 3.70%. Following a 0.36% gain on Wednesday, BTC ended the day at $29,479. Significantly, BTC wrapped up the day holding onto the $29,000 handle for the first time since April 18.

Bullish throughout the session, BTC surged from a first-hour low of $28,395 to a late afternoon high of $29,888. However, coming up against the First Major Resistance Level (R1) at $29,896 and resistance at $30,000, BTC eased back to end the day at $29,479.

US Corporate Earnings and the NASDAQ Composite Index Delivered Support

It was a busy Thursday, with US economic indicators and corporate earnings in focus.

US economic indicators sent mixed signals. Significantly, the US economy grew by 1.1% in Q1 versus a forecasted 2.0%. In Q4, the US economy expanded by 2.6%. Pending home sales figures also drew investor attention, sliding by 5.2% in March versus a forecasted 0.5% increase.

However, initial jobless claims fell from 246k to 230k, removing immediate concerns over the US labor market.

Corporate earnings supported the bullish session, with the markets responding further to the Meta Platforms (META) results ahead of Amazon.com (AMZN). Amazon.com also beat estimates, supporting the bullish session.

On Thursday, the NASDAQ Composite Index gained 2.43%, with the Dow and S&P 500 ending the day up 1.96% and 1.57%, respectively.

The Day Ahead

It is a busy Friday session. US economic indicators and corporate earnings will remain in focus.

US inflation, personal spending, and personal income figures will draw interest. Hotter-than-expected inflation figures and a pickup in personal spending would support a more hawkish Fed interest rate hike on Wednesday.

Big names on the US earnings calendar include Exxon Mobil (XOM) and Chevron (CVX).

Away from the US calendars, the crypto news wires will remain the focal point. The US banking sector, SEC v Ripple case-related updates, and Binance and Coinbase (COIN)-related news will move the dial. Regulatory activity and US lawmaker chatter will also draw interest.

Coinbase CEO Brian Armstrong shared the response to the SEC’s Wells Notice in defiance of the SEC, which continues to regulate by enforcement despite the growing number of critics on Capitol Hill.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.05% to $29,464. A range-bound start to the day saw BTC rise to an early high of $29,488 before falling to a low of $29,463.

BTC Technical Indicators

Resistance & Support Levels

BTC needs to avoid the $29,254 pivot to target the First Major Resistance Level (R1) at $30,113. A move through the Thursday high of $29,888 would signal an extended bullish session. The crypto news wires, US corporate earnings, and US economic indicators should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $30,747. The Third Major Resistance Level (R3) sits at $32,240.

A fall through the pivot would bring the First Major Support Level (S1) at $28,620 into play. However, barring a data-fueled sell-off, BTC should avoid sub-$28,000 and the Second Major Support Level (S2) at $27,761. The Third Major Support Level (S3) sits at $26,268.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. BTC sat above the 100-day EMA ($28,583). The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, sending bullish signals.

A bullish cross of the 50-day EMA ($28,498) through the 100-day EMA ($28,583) would support a breakout from R1 ($30,113) to target R2 ($30,747). However, a fall through S1 ($28,620) would bring the 100-day ($28,583) and 50-day ($28,498) EMAs into view. A fall through the 50-day EMA would send a bearish signal.