Bitcoin ($BTC) begins formation of a bull flag – surge to continue

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As a researcher with over a decade of experience in financial markets and a keen interest in cryptocurrencies, I find myself captivated by the current state of Bitcoin (BTC). The bull flag forming on the short-term time frame is a sight to behold, reminiscent of a coiled spring ready to shoot upwards. If history repeats itself, we might just see BTC break through the $90,000 resistance and head towards the coveted $100,000 mark.

Following an impressive surge after Donald Trump’s election victory, the current Bitcoin price finds itself gathering strength beneath the barrier of $90,000. In the short term, a bullish pattern resembling a flag is emerging. If this flag pattern holds and Bitcoin surges past it, a projected move based on this pattern could potentially propel the Bitcoin price to reach $100,000.

Institutions are driving this bull market

There’s a growing sense of optimism about this Bitcoin bull market across various platforms. However, unlike previous times, it doesn’t seem like retail investors are leading the charge. Instead, institutions appear to be becoming more active. If Bitcoin reaches the significant price point of $100,000, there could be a massive influx of institutional buying, potentially triggering a wave of purchases.

It’s clear that significant Bitcoin purchases are currently underway or about to unfold, as some institutions and nations are developing their Bitcoin acquisition plans for the future.

Typically, large-scale purchases of Bitcoin ETFs, such as the one from BlackRock’s IBIT fund, are becoming commonplace in the U.S. On Tuesday alone, approximately 9,040 Bitcoins worth around $801.7 million were bought.

Just moments ago, Michael Saylor’s firm, MicroStrategy, invested an additional $2 billion in Bitcoin. Given Saylor’s plan to acquire a total of $42 billion in Bitcoin over the coming years, that means another $40 billion is yet to be purchased.

Absolutely, there’s a significant opportunity for nations to invest in Bitcoin. Whether the U.S. decides to include Bitcoin as part of its strategic reserves remains uncertain. Regardless, many countries are likely to take notice. Once a major nation starts purchasing Bitcoin, it could trigger a massive wave of investment.

$BTC bull flag materialising on short-term time frame

The graph displayed illustrates rapid fluctuations in Bitcoin (BTC) prices over a two-hour time period. Noticeably, BTC approached but did not quite reach the $90,000 price level, instead creating a minor bullish pattern by moving back and forth just below this mark, forming what resembles a small pennant or flag.

After the price completes its movement within the bull flag, which is a pattern indicating a continuation, it’s likely to break out above this range, further fueling the upward trend. Approximately, the potential increase in price for this pattern could be approximately $100,000.

Of course, there is the possibility that the price drops out of the bottom of the flag, and this might spook many. However, the trend is most definitely up, and any price spikes to the downside would likely be bought up.

Next stop $100,000

The monthly Bitcoin chart offers a broad overview of current market trends, clearly showing that the recent surge to $90,000 was halted not just by the 1.414 Fibonacci level, but also by an ascending trendline which passes through both peaks of the 2021 bull market.

Should Bitcoin (BTC) manage to surpass $90,000 and sustain that price point as a support, reaching the 1.618 Fibonacci level around $101,000 might become more of an expectation than a formality.

Should this move come to fruition, it’s highly probable that Bitcoin will experience a brief halt, allowing the market to absorb the anticipated surge. If the price doesn’t bounce back from the $100,000 mark, we might need to reconsider significantly higher price predictions. Buckle up!

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2024-11-13 14:03