Despite abundant FUD in the cryptocurrency market, the price of Bitcoin (BTC) continues to rise. A weekly stochastic RSI crossover could confirm next week, leading to increased momentum that may push Bitcoin to new highs.
Many still refer to this as a relief rally and expect Bitcoin to eventually decline – possibly leading to entry into the next bear market for Bitcoin.
Brad Says There’s No Bull Flag
Renowned trader Peter Brandt stated that while he is impressed with the current rise in Bitcoin’s price, a series of lower highs and lower lows continue to form, despite what he calls “the publicity campaign.”
That said, a series of lower highs and lower lows following a major price wave resemble the formation of a bull flag. Brandt disputes this, referring to “Edwards, Magee, Schabacker,” who argue that a bull flag extending over several months should be disregarded as such.
Source: TradingView
The above weekly chart allows the reader to decide for themselves. Even if the pattern should be dissolved as a bull flag, it is certainly a downward-sloping channel, and this is a bullish pattern that would be much more likely to see the price exiting from the top of the channel rather than the bottom.
Bitcoin ETFs Buy $1 Billion in BTC in 3 Days
Brandt also referred to Spot Bitcoin ETFs as responsible for the “publicity campaign.” If so, then perhaps this is worthwhile. 9 consecutive days of inflows have seen ETFs swelling their Bitcoin funds. Over the 3 days from Friday to Tuesday, the ETFs bought over $1 billion in $BTC.
Why Bitcoin and Not Gold
Back to technicals, the catalyst for breaking the bull flag/channel top is the crossing of the weekly stochastic RSI beyond the 20 level. This would likely bring massive momentum beneath Bitcoin’s price, potentially enough to drive the coin to new highs.
Source: TradingView
It could also be noted that many analysts point to gold as the safest bet during these times of potential economic crisis. If one looks at the gold chart compared to Bitcoin, it should be noted that not only did Bitcoin outperform gold by almost 1,000% just after the pandemic, but it is potentially poised to reach new highs, having bounced from the 0.618 Fibonacci level. The stochastic RSI for the weekly BTC/GOLD pair should also be noted. Just like for BTC/USD, a crossover has recently occurred.
Both bulls and bears will voice their opinions, but the market will do what it will do. If the bears are right, Bitcoin will roll over and sink into a bear market ahead. If the bulls are right, Bitcoin begins its next massive price surge. Which side are you on?
Disclaimer: This article is provided for informational purposes only. It is not intended to be used or construed as legal, tax, investment, financial, or other advice.
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