Introduction:
Bitcoin, the world's most valuable cryptocurrency, has caught the attention of an optimistic analyst due to its six-year range inside a rising channel. Despite the occasional fluctuations, the structure remains intact, fueling excitement among HODLers. This blog post delves into the analysis of Bitcoin's price chart, the potential for a breakout, and the factors that could lead to a new bull run.
Analyzing the Rising Channel:
As of July 21, Bitcoin was trading in the lower part of the rising channel, hovering near the support trend line. The rejection of lower lows and the bounce from the support line have left the analyst bullish, signaling a potential shift in favor of the bulls.
Bitcoin To $175,000:
The trader's assessment suggests that if Bitcoin breaks above the upper resistance level at around $32,000, it could ignite a new bull run. In this scenario, Bitcoin's price might retest highs of the rising channel at an optimistic $175,000. Such a possibility has excited HODLers, who see this level as a feasible target.
Considering Crypto Volatility:
While the bullish forecast is promising, it's crucial to acknowledge the inherent volatility in the crypto market. Bitcoin's last bull run saw it surge from sub-$10,000 to $69,000 in under two years, highlighting the potential for significant price swings. Therefore, breaching the $32,000 level could mark the beginning of another leg up in the bullish formation set in motion between 2020 and 2021.
Current Bitcoin Price and Resistance Levels:
As of July 22, Bitcoin's spot rates remain below the $30,000 level, with resistance at $31,800. Despite general optimism, the market is awaiting a breakthrough of July 2023 highs, as prices consolidate.
Halving and ETF Approval as Potential Catalysts:
The exact triggers for the next bull run are uncertain, but two potential catalysts are being closely monitored. Firstly, the upcoming Bitcoin halving event could provide the impetus for a surge towards 2021 highs of $69,000. Secondly, market participants are eagerly watching the progress of spot Bitcoin exchange-traded fund (ETF) applications in the United States.
BlackRock's involvement in the crypto sphere has been well-received, buoying prices in recent weeks. If a Bitcoin ETF receives approval, it could pave the way for increased institutional involvement and heightened demand, ultimately driving prices higher. Additionally, legitimizing Bitcoin as an investment asset through an ETF would have significant implications for the market.
Conclusion:
The rising channel inside which Bitcoin has been trading for six years has garnered attention, sparking hopes of a potential $175,000 bull run. While the bullish forecast is compelling, it's essential to acknowledge the inherent volatility of the crypto market. The upcoming halving event and potential ETF approval could serve as catalysts for the next bull run. As always, investors should exercise caution and conduct thorough research before making any decisions in this dynamic and ever-evolving market.
