From a high of over $98,000 on Monday, the $BTC price sank to a low of $93,600 on Tuesday. However, the bulls stepped in and have buoyed the price back up to $96,700. Can this upside movement continue? Breakout, or yet another rejection to come?
After dropping to the bottom trendline of the short-term triangle it is within, the $BTC price was bought up quickly by the bulls. The price is once again heading to the top of the triangle where a breakout could take place.
Martial law overturned in South Korea
Many factors could have contributed to the rapid fall in price for $BTC - not least, the sudden declaration of martial law in South Korea by its president Yoon Suk-yeol - a move which was swiftly overturned by the nation’s parliament.
Blackrock IBIT ETF now holds half a million BTC
In the US, the Blackrock IBIT Spot Bitcoin ETF bought another 7.23K BTC on Tuesday, bringing its overall holdings to 500.38K BTC. Half a million Bitcoin purchased in less than a year by just one entity says volumes for where the $BTC price might potentially go over the rest of this bull market.
Crypto-friendly regulators on the way in?
On the regulatory front, Paul Atkins is still the Trump pick to assume the mantle of SEC Chairman. This is despite rumours that Atkins is reluctant to take the job. For the role of overall “Crypto Czar”, former CFTC Chairman Chris Giancarlo is the president’s preferred pick.
If both men are confirmed in these positions, with both very open and favourable to crypto, this could undoubtedly provide a huge boost to Bitcoin going into the end of this year.
$BTC revisits bottom of triangle
Source: TradingView
The 4-hour chart for Bitcoin shows that the price did spike down to the bottom of the flag, which also coincided with the 0.618 Fibonacci for this last downward move. This was a good place for a bounce, and $BTC did just that.
Now that the price has had a decent rise, it has come up exactly against the 0.618 Fibonacci to the upside. If it can battle through this level, the 0.786 Fibonacci is just ahead, together with the top of the triangle. Both of these are likely to provide strong resistance.
Bollinger Band jaws wide open on 2-week chart
Source: TradingView
The Bollinger Bands on the two-week chart tell a story. It can be seen how the jaws of the bands opened wide as the bull market developed through 2020/2021, and how the price generally kept outside of the upper band, until entering back inside at the first of the double tops.
After squeezing together in early 2023, and then again later in that year, the price then kept to the upper band until coming back inside at the $69,000 top.
Now the price is on the way up again, the jaws have opened really wide, and it now remains to be seen if the price can stay at the edge of the upper band. Once it definitively comes inside, could this be the end of the bull market?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
