Bitcoin (BTC) holds above $63,000 – next bullish phase to come

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As a seasoned analyst with over two decades of market observation under my belt, I find myself increasingly optimistic about the current state of Bitcoin (BTC). After a bullish week that saw BTC manage to stay above the critical $63,000 support and achieve a short-term breakout from the ascending triangle, the stage is set for further gains.

As a researcher, I ended the week on an optimistic note regarding Bitcoin. Maintaining its position above the recently regained $63,000 support level, the current price of BTC is showing signs of consolidation. Meanwhile, the bulls are keeping their sights set on the top of the channel, roughly around $68,000.

A week of economic data to come

On Friday, there was a significant increase of $252 million in investments towards Spot Bitcoin ETFs, marking the seventh consecutive day with positive inflows. Conversely, the potential impact of the U.S. government selling its Bitcoin remains a looming concern, particularly if the Biden/Harris administration chooses to do so. Meanwhile, most of the Bitcoin recovered from the Mt. Gox hack has been returned to creditors, and for the moment, they appear content to hold onto their shares.

This week brings numerous economic data releases from American institutions, and considering the Federal Reserve’s accommodative stance regarding potential interest rate decreases, the administration is optimistic for an easy transition (soft landing) in the economy, as opposed to the harsh landing some experts have forecasted.

The data released this week is the following:

  • Tuesday: Consumer Confidence Index
  • Thursday: Initial Jobless Claims Report
  • GDP data revision
  • Friday: Personal Income and PCE Index
  • Consumer Sentiment Survey

As an analyst, I find myself anticipating that if the data aligns with or surpasses market predictions, it’s reasonable to expect continued growth in the stock market. This optimistic trend might also spur positive ripple effects within the crypto market. Conversely, should the data fall short of expectations, a temporary wave of pessimism could impact both stocks and cryptocurrencies. However, over the long term, this could intensify calls for rate cuts due to economic slowdown concerns.

Short term $BTC breakout achieved

Over the immediate period, it appears the Bitcoin price has burst through the upper boundary of a bullish rising triangle. Currently, efforts are being made to maintain a position above $63,000. While there’s optimism that the bulls might succeed, it’s also plausible we could witness some sideways movement or even a dip back towards $61,600 in the coming days.

Bullish weekly close

Looking at a broader weekly perspective as a researcher, I can’t help but emphasize the significance of the Bitcoin price closing above $63,000. Remarkably, it even surpassed $64,000. It’s crucial to keep an eye on $61,000 as a key support level in case we see any potential drops.

Stars are aligning for $BTC once more

Moving forward, it’s essential to pay attention to the Stochastic RSI at the chart’s base. A recent crossover event occurred within these indicators, suggesting a surge in positive price movement. Moreover, the indicators currently stand above the 20 mark, further highlighting this upward momentum.

It’s possible that the price will maintain its robust increase and reach a new peak of around $70,000. If it can’t do so, we may see another dip instead, which could also mean another unsuccessful attempt at a rally.

It seems that the conditions are favorable for Bitcoin again. The stars appear to be in alignment once more, and it’s now up to the Bitcoin supporters to make use of the present bullish momentum and push the price upward, possibly breaking out of the expanding wedge. If this occurs, get ready for Bitcoin prices reaching $100,000.

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2024-08-26 15:18