On Sunday Bitcoin reached over $68,000 in price, and tagged the top of its long-time bull flag. Is $BTC preparing for an upward price explosion? When will the king of the cryptocurrencies make its move?
Bitcoin price preparing for big upside move
What a difference three weeks makes. When Bitcoin was teetering on the edge of oblivion at $53,500 in early July, many investors were perhaps looking to sell, and probably many of them did. However, here we are back at the top of the Bitcoin bull flag, and it’s maybe just a matter of time before the $BTC price explodes upwards.
Sentiment for Bitcoin has improved dramatically, with the Fear and Greed Index at a score of 70 - firmly in Greed territory. Elon Musk has just changed his profile picture on X to one with laser eyes; perhaps in acknowledgement of this huge sentiment change for $BTC.
The Spot Bitcoin ETFs are continuing to have their impact on price, as Friday saw another bumper day for net inflows into the 9 US-based funds. $383.6 million, equivalent to 6,000 BTC was bought across these ETF funds. With the daily supply of Bitcoin now equating to only 450 BTC, this is more than 13 times daily supply - just for the 9 US ETFs.
Small pull-back may take place first
Source: TradingView
On the 12-hour time frame it can be seen that the $BTC price has been traversing higher inside an upward-sloping channel. Given that this kind of pattern will usually break to the downside, there could likely be some kind of small pull-back on the way. Whether this comes all the way back to support at $64,000 remains to be seen.
The most bullish signal of all
Source: TradingView
On the weekly time frame, it can be seen how $BTC has reached the top of the bull flag/channel, and has so far been rejected. Of course, the week has only just started, so if the $BTC price can close above the top trend line by the close next Sunday, this would be incredibly bullish, and the price might be expected to go back to the all-time high at $73,800.
At the bottom of the chart, it should be noted that both indicator lines on the stochastic RSI have risen above the 20 level. This is the most bullish signal of all, giving notice that huge momentum has now entered beneath the $BTC price, potentially providing the impetus to push Bitcoin much higher.
With rumours that Donald Trump will announce a future US Bitcoin strategic reserve at Bitcoin 2024 in Nashville this coming weekend, this is also likely to provide a massive boost to the cryptocurrency market. These are exciting times.
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.
