Bitcoin (BTC) at critical juncture – bounce or rejection?

As a seasoned crypto investor with over a decade of experience in navigating Bitcoin’s rollercoaster ride, I find myself cautiously optimistic about the current state of play for BTC/USD. The $64,500 horizontal level has proven to be a resilient support, but I have learned from past experiences that Bitcoin rarely follows a straight path.


Has the BTC/USD combination dropped to the $64,500 horizontal stage, a point it just switched into support. Is Bitcoin set to rebound from this level and breach the apex of its bull pennant, or is another rejection imminent at this juncture?

Will the $64,500 horizontal support hold?

Bitcoin appears to be maintaining its trajectory towards breaking free from a six-month long bullish pattern, often referred to as a “bull flag.” However, some investors might find themselves on edge as Bitcoin hovers near the significant horizontal support of approximately $64,500.

Bitcoin seldom follows the simple path; instead, its journey often presents challenges, particularly for investors and traders. Instead of smoothly continuing its recent upward trend and breaking through the peak of its bull flag on the way to a new high, it might have seemed straightforward for the Bitcoin price.

None of it. The $BTC price has come all the way back down to what was previously strong resistance at $64,500. That said, this is also the bottom of the ascending channel. For $BTC to make this move is more or less perfect from a technical analysis point of view.

Even if the price drops significantly below its support level within the channel, breaching the upward trendline, and creates a new low below $62,400, it could raise some valid worries.

Nevertheless, for now, everything appears to be typical, and Bitcoin seems to be steadily moving towards breaking through its bull flag. This potential breach might occur within the current week.

U.S. Spot Bitcoin ETFs buy another $1.1 billion in $BTC

Institutions in the U.S.-listed Bitcoin ETFs have been buying robustly, as evidenced by a $494.8 million inflow of approximately 7,600 units on Friday. These consistent purchases began after a minor outflow on September 18, amounting to just $52.7 million.

Indeed, these establishments recently purchased approximately 1.1 billion dollars’ worth of Bitcoin. This represents their largest purchase since last July, suggesting a potential surge in institutional interest. If this trend continues, it might significantly boost the value of Bitcoin.

Trend continues up, but support must hold

Looking at a broader, weekly perspective of Bitcoin’s chart, it’s noticeable that the upper boundary of the bullish flag pattern isn’t much higher than its current value. Given this situation, it’s crucial for the support level to remain strong.

At the base of the graph, the Stochastic RSI’s lines continue climbing, suggesting robust price movement. Meanwhile, the Relative Strength Index exhibits a breach in its downward trendline. Yet, we anticipate seeing a new peak by the week’s end for further confirmation.

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2024-09-30 10:46