On Sunday, Bitcoin reached $68,000 and marked the peak of its long-term bull flag. Is BTC preparing for a significant upward price explosion? When will the king of cryptocurrencies make its move?
Bitcoin’s Price Prepares for Major Upside Move
What a difference three weeks make. When Bitcoin was teetering around $53,500 in early July, many investors might have been inclined to sell, and likely many did. However, here we are again at the top of the Bitcoin bull flag, and it might just be a matter of time before BTC’s price explodes higher.
Sentiment around Bitcoin has improved dramatically, with the Fear and Greed Index at a score of 70 – firmly in the Greed territory. Elon Musk just changed his profile picture on Twitter to an X with laser eyes, perhaps acknowledging this significant shift in sentiment towards BTC.
Spot Bitcoin ETFs continue to impact its price, as Friday saw another critical day for net inflows into the 9 U.S.-based funds. $383.6 million was bought, equivalent to 6,000 BTC through these ETFs. With Bitcoin’s daily supply now equivalent to just 450 BTC, this is over 13 times the daily supply – for just the 9 U.S. ETFs.
A Minor Pullback May Occur First
Source: TradingView
In the 12-hour timeframe, it can be seen that the price of $BTC is moving higher within an ascending channel. Given that this type of pattern typically breaks downward, there could potentially be some minor pullback along the way. Whether this will revert to support at $64,000 remains to be seen.
The Most Bullish Signal of All
Source: TradingView
In the weekly timeframe, it appears that $BTC has reached the top of the bull flag/channel and has been rejected so far. Of course, the week has just begun, so if the price of $BTC can close above the trendline by next Sunday’s close, that would be incredibly bullish, and the price could be expected to return to the all-time high of $73,800.
At the bottom of the chart, it should be noted that both lines of the stochastic RSI indicator have risen above the 20 level. This is the most bullish signal of all, indicating that significant momentum has now entered below the price of $BTC, potentially pushing Bitcoin much higher.
With rumors that Donald Trump will announce a future strategic reserve of Bitcoin for the US at Bitcoin 2024 in Nashville this coming weekend, this could also provide a huge boost to the cryptocurrency market. Exciting times ahead.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as legal, tax, investment, financial, or other advice.