The Bitcoin price failed to break out of its bull flag and break major resistance at the end of last week. After a dump on Friday and a flat weekend, what could be next for Bitcoin?
Another rejection - will Bitcoin continue downward?
Bitcoin has been having a hard time breaking out of its bull flag, and the sideways chopping price action just continues. In the daily time frame, this was the fourth time that Bitcoin has tried to break free of the downsloping trend line, and for the fourth time the price met with rejection.
The question has to be asked: “Was the top made in March at $73,800, and has the $BTC price been rolling over and getting weaker ever since then?”
The answer, as always, is that nobody knows what Bitcoin will do over the long term time frame, but it has to be remembered, it is still in a bull market until proven otherwise, and bull flags break upward most of the time.
Huge ETF inflows VS huge hedge funds short
The Spot Bitcoin ETFs are pulling in a huge amount of BTC from the market. $1.83 billion was the total for last week. At the same time, hedge funds are building a massive short on the $BTC price. This tug of war between the bulls and the bears will have to end one way or the other, and soon.
Short term bounce likely
Source: TradingView
In the very short hourly time frame the price can be seen to be holding the very important support at $69,000. Significantly, a higher high was made on Friday, and now a higher low could be in. At least for the short term, a bounce is looking likely from here.
Big move coming soon for $BTC
Source: TradingView
In the higher time frame of the daily, all looks good still. The uptrend since 1 May could be breaking, but all of these trends do break anyway at some point. The main thing is that the $69,000 support is holding, and volume is continuing to decline.
There is going to be a big move in one direction or the other, and this is coming soon. Will the market decide to surprise everyone and bring $BTC down to the $60,000 area one last time, or will the price finally break through the top of the bull flag, pierce the resistance, and break the all-time high?
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.
