Bitcoin has broken out of a 22-day descending trend channel. This sign of a potential reversal has fueled hopes of setting a new all-time high (ATH).
Bitcoin has been on a downward trajectory for the past three weeks. However, the recent breakout has injected new optimism into the market. But what exactly is the downward channel and why is this breakout significant?
The significance of breakthrough
A descending trend channel is a technical pattern that forms when the price of an asset moves lower and lower within parallel trendlines. In Bitcoin’s case, this downward trend has been ongoing for more than three weeks.
Traders watch these channels closely as they often precede major price moves. A breakout from a descending trending channel suggests that Bitcoin’s bearish momentum may be waning.
Be cautious and manage risks accordingly.
As the cryptocurrency market eagerly awaits a breakout, one thing is certain: Bitcoin is about to hit new highs.
If you can't find your direction in the cryptocurrency circle and don't know what coin to buy, please find me and I will share more information and strategies related to the cryptocurrency circle for free.
BlackRock buys on dips, institutional funds enter the market
The recent actions of BlackRock, a well-known financial investment institution, in the Bitcoin market are particularly eye-catching. Although the price of Bitcoin has recently experienced a correction, BlackRock did not back down, but bought at a low price, showing its firm confidence in the long-term value of Bitcoin. As one of the world's largest asset management companies, BlackRock's actions are often regarded as an important indicator of the market. This dip buying has undoubtedly injected a shot in the arm for the Bitcoin market.
Bull market may resume as US stock market strengthens
Notably, the correlation between Bitcoin and the S&P 500 remains high. This means that Bitcoin’s movements can be significantly affected by U.S. stock markets. As the U.S. stock market is expected to continue to strengthen in 2024-2025, Bitcoin's bull market is also expected to resume. This expectation provides an important reference for investors.