As a seasoned crypto investor with over a decade of experience in the market, I’ve seen my fair share of bull and bear markets. The recent price surge of Bitcoin (BTC) has left me both excited and cautious. The weekly stochastic RSI cross up that could be confirmed next week is certainly an encouraging sign, potentially leading to increased momentum and new highs for Bitcoin.
Despite the widespread fear, uncertainty, and doubt (FUD) in the cryptocurrency market, Bitcoin‘s (BTC) price is still surging ahead. A potential confirmation of a weekly stochastic RSI crossover could occur next week, which may further fuel Bitcoin’s momentum and propel it to new record-breaking heights.
Several individuals continue to refer to recent Bitcoin price increases as a rally, believing that a downturn is imminent and potentially signaling the start of another Bitcoin bear market.
Brandt says no bull flag
Renowned trader Peter Brandt is in awe of Bitcoin’s recent price rise, yet he cautions that the market has been forming a pattern of successive lower peaks and troughs. Despite the excitement surrounding Bitcoin, Brandt observes this trend, which he describes as “the hype.”
Based on my extensive experience in technical analysis and studying market trends, I have come across various formations that indicate potential price movements for financial assets. One such formation is a bull flag, which typically follows a significant price surge and is characterized by a series of lower highs and lower lows. However, not all bull flags are created equal.
As an analyst examining the weekly chart, I can observe that while there’s a possibility the current formation could be debunked as a bear flag, it unmistakably takes the shape of a downward-sloping channel. However, this pattern is typically considered bullish, implying a higher probability of the price breaking through the resistance at the channel’s upper boundary rather than succumbing to the support at its lower end.
Bitcoin ETFs buy $1 billion in BTC in 3 days
As an analyst, I’ve noticed Brandt attributing the recent “hype” in the Bitcoin market to the Spot Bitcoin Exchange-Traded Funds (ETFs). If these funds indeed contribute to this excitement, then their rapid growth merits consideration. Over the past nine consecutive days, these ETFs have witnessed substantial inflows, resulting in a significant increase in their Bitcoin holdings. Specifically, between Friday and Tuesday, they purchased approximately $1 billion worth of Bitcoin.
Why it’s Bitcoin and not gold
As a crypto investor, I keep a close eye on the technicals of Bitcoin’s price action. A significant development that could lead to a breakout at the top of the bull flag or channel is when the weekly stochastic RSI crosses above the 20 level in an uptrend. This event has historically brought substantial momentum to Bitcoin’s price, potentially propelling it towards new record highs.
During economic instability, several market analysts recommend gold as a secure investment option. In contrast, gold’s performance against Bitcoin is remarkable. While gold may have been the preferred choice historically, Bitcoin has surged nearly 1,000% since the pandemic began and could potentially reach new peaks, having recovered from the 0.618 Fibonacci level. Moreover, considering the BTC/GOLD pair’s weekly stochastic RSI, a crossover event similar to BTC/USD has just transpired.
In the world of Bitcoin trading, there are two distinct groups: the bulls and the bears. The bulls believe that the cryptocurrency’s value will continue to rise, leading to another price surge. On the other hand, the bears anticipate a decline in Bitcoin’s value, potentially marking the beginning of a bear market. Ultimately, however, it is important to remember that the market has its own unpredictable dynamics. While both perspectives hold merit, the outcome remains uncertain. So, which camp do you align with?
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2024-07-18 15:10