Bitcoin (BTC) breaks out of bull flag – $100,000 next major target

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As a seasoned financial analyst with over a decade of experience in the markets, I have seen my fair share of trends come and go. But never have I been this excited about a particular asset as I am about Bitcoin right now.

On Sunday, Bitcoin managed to maintain its position above the bull flag formation, marked by an impressive doji candle. As of Monday, Bitcoin has been surging upwards, aiming for the $71,000 mark. With a potential breakthrough at the all-time high of $73,800 next, Bitcoin could then propel itself into new price territories, with $100,000 as the subsequent significant objective.

Game theory 

Bitcoins are gaining increasing recognition around the globe. For instance, a potential U.S. presidential candidate, Donald Trump, has proposed integrating Bitcoin into the national strategic reserves. Additionally, China is reportedly reconsidering its ban on Bitcoin transactions, and at least one anonymous state is believed to be investing in this digital currency clandestinely.

One possibility for paraphrasing your statement in a more natural and easy-to-read way is: “Might full-scale game theory be at play here? The entry of just one major power or large country into the Bitcoin market could set off a frenzy, leading to a scramble among nations to acquire the remaining supply of this rapidly dwindling asset.”

For major countries such as the US and China, acquiring vast amounts of Bitcoin by printing money and purchasing it would be a relatively straightforward solution. Just like gold, holding the largest amount of Bitcoin will become increasingly significant as the value of fiat currencies, which can be compared to melting ice cubes, begins to rapidly decline, accelerating the race towards worthlessness.

Bull flag breakout

Weekly view of Bitcoin reveals an impressive bull flag formation. This pattern boasts three distinct contact points with the flag’s base and multiple touches with its upper boundary, leaving no room for debate – a textbook flag pattern has unfolded.

The past week’s candle played a pivotal role in triggering the current price surge. Following a steady climb to the top of the flagpole over a two-to-three-week span, the market corrected, coming close but not touching the significant support level at $63,000. This correction marked the end of the flag pattern as it was strongly bought up by bulls.

As the week came to a close, a doji candle with a long lower shadow appeared, indicating support very near the bull flag’s peak for Bitcoin ($BTC). Come Monday, there are signs of a significant surge in price, aiming to break through the all-time high and continue on its journey to the next destination.

At the base of the graph, the stochastic RSI is evident. This robust momentum indicator is indicating that substantial forward momentum is presently propelling the price upward.

Bitcoin stars are aligning

Expanding the perspective, it becomes clear that the price has surpassed the peak reached during the previous bull market in 2021. If this trend continues, Bitcoin could experience significant growth beyond this point.

At the base of this graph, the Relative Strength Index (RSI), signaling overbought or oversold statuses, appears to be disrupting its descending pattern initiated in early March this year. If this interruption is verified by the end of this week and the RSI line subsequently surpasses the 70 threshold, a new bullish trend will have been established.

It’s an auspicious turn of events for Bitcoin. Who would have guessed, at the onset of this bull run, that a Bitcoin ETF from the US would be approved, and that Blackrock, the largest asset manager globally, would accumulate such a substantial amount of Bitcoin so quickly?

It’s surprising how open some of the largest global authorities have become towards Bitcoin. The cryptocurrency’s moment has arrived, making it increasingly challenging to estimate its upward price goals with certainty.

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2024-07-29 13:57