Bitcoin (BTC) failed breakout – what’s next?

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As a researcher with experience in cryptocurrency markets, I’ve seen firsthand how unpredictable Bitcoin can be. The recent failure of Bitcoin to break out of its bull flag and reach major resistance is concerning, but it’s important to remember that the trend remains upwards until proven otherwise.

Last week, Bitcoin‘s price attempt to break free from its bull flag and surmount significant resistance came up short. Following a sharp decline on Friday and a relatively quiet weekend, what lies ahead for the cryptocurrency market’s leading player?

Another rejection – will Bitcoin continue downward?

As a researcher studying the cryptocurrency market, I’ve noticed that Bitcoin has faced significant resistance in attempting to break out of its bull flag formation on the daily chart. Previously, on four separate occasions, Bitcoin’s price approached the downward-sloping trendline only to be met with rejection each time.

“Did the top of the market for BTC occur in March, priced at $73,800, and has the value of Bitcoin been declining and losing strength since then?”

As a crypto investor, I must admit that predicting Bitcoin’s behavior over the long term is an uncertain endeavor. However, it’s essential to keep in mind that we are currently in a bull market unless there’s clear evidence to the contrary. Historically, bull flags have tended to break upwards rather than downwards.

Huge ETF inflows VS huge hedge funds short

As a crypto investor, I’ve noticed that Spot Bitcoin ETFs have been drawing a significant amount of Bitcoin from the market recently. Last week alone, they pulled in a massive $1.83 billion. Simultaneously, hedge funds have been aggressively building a large short position on Bitcoin’s price. This ongoing battle between the bulls and the bears is unsustainable and will likely reach its resolution soon.

Short term bounce likely

As an analyst, I’ve observed that within the narrow timeframe of an hour, the price has managed to hold its ground at a crucial support level of $69,000. Notably, we witnessed a new high on Friday, which opens up the possibility for a higher low to form. For now, it seems likely that there will be a rebound from this point in the short term.

Big move coming soon for $BTC

In the larger perspective of daily charts, the bullish trend initiated on May 1st remains intact, albeit showing signs of potential weakening. However, such trends often experience interruptions before resuming their course. Crucially, the price level at $69,000 continues to serve as strong support, and the volume is gradually decreasing.

The cryptocurrency market is expected to make a significant move imminently. Will Bitcoin’s price plunge back to $60,000 for a surprise dip before surging higher, or will it successfully breach the bull flag’s upper boundary, shatter the resistance, and set a new all-time high?

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2024-06-10 13:11