Bitcoin (BTC) reaches top of bull flag – explosion imminent?

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As a seasoned analyst with over a decade of experience in the financial markets, I have witnessed numerous price movements and trends across various asset classes. Bitcoin’s recent surge to over $68,000 and tagging the top of its long-time bull flag has left me quite intrigued. Is this the moment we’ve all been waiting for – the upward price explosion for Bitcoin?

Last Sunday, Bitcoin surpassed $68,000 in value, touching the peak of its extended bullish pennant. Could this be a sign of an imminent significant price surge for Bitcoin? Keep an eye out for when the leading cryptocurrency decides to act.

Bitcoin price preparing for big upside move

In just three short weeks, the landscape for Bitcoin has transformed dramatically. When its value hovered around $53,500 in early July, some investors may have considered cashing out. Yet, now we find ourselves once again at the peak of the Bitcoin bull flag. It seems only a matter of time before the price of Bitcoin surges upward.

The mood towards Bitcoin has significantly brightened up, as indicated by the Fear and Greed Index hitting a 70, which places it firmly within the “Greed” zone. Elon Musk’s recent update to his profile picture on X could be his way of acknowledging this noticeable shift in sentiment towards $BTC.

The influence of Spot Bitcoin ETFs on price remains significant, with Friday marking another day of substantial inflows into the nine US-funds, totaling approximately $383.6 million or roughly 6,000 BTC. Considering the current daily production of Bitcoin is around 450 BTC, this represents a substantial purchase exceeding thirteen times the daily supply, all from these nine US ETFs.

Small pull-back may take place first

On the 12-hour chart, Bitcoin’s ($BTC) price has been climbing within an uptrending channel. However, as this pattern often results in downward breaks, a potential correction may occur. The extent of this correction, which could reach back to support at $64,000, is yet to be determined.

The most bullish signal of all

On a weekly basis, Bitcoin ($BTC) has reached the peak of its bull flag or channel. So far, it has been unable to hold this position, signaling rejection. However, with the current week having only begun, if Bitcoin’s price manages to close above the top trend line by the end of next Sunday, this would be a strong indication of an ongoing bull market, potentially leading the price back up to its all-time high of $73,800.

At the base of the graph, it’s important to mention that both lines on the stochastic RSI have climbed above the 20 threshold. This is the strongest bullish indication, signaling significant momentum has joined the $BTC market, which could significantly boost Bitcoin prices further.

Amidst speculation that Donald Trump may unveil plans for a US Bitcoin strategic reserve during Bitcoin 2024 in Nashville this upcoming weekend, such an announcement could significantly surge the cryptocurrency market’s momentum. The anticipation is palpable.

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2024-07-22 14:12