As a seasoned market analyst with over two decades of experience under my belt, I’ve seen my fair share of market swings and trends. The current state of Bitcoin (BTC) is intriguing, to say the least.
Currently, Bitcoin (BTC) appears to be going through a short period of correction following its breakout from a 7-month bullish pattern. This breakout has been successful so far. The BTC price is currently above the upper trendline of this bullish pattern, suggesting that once the ongoing correction ends, an upward movement may follow.
ETFs, war, and global liquidity
As an analyst, I find myself observing a noteworthy phenomenon – the growing apprehension among institutions about potentially missing out on opportunities as the unabated purchasing spree for Spot Bitcoin ETFs persists. The recent influx into these ETFs resulted in the acquisition of approximately 4310 BTC, equivalent to $297.6 million, from a market supply that seems to be dwindling. Notably, the Blackrock ETF (IBIT) accounted for nearly all the buying activity on Monday.
Despite some developments, global conflicts continue to influence markets significantly. The possibility of Israel striking Iran remains, as peace talks seem unproductive so far. Moreover, the upcoming U.S. presidential elections add another layer of uncertainty to an already volatile mix. This situation can lead to both substantial gains and losses in the market.
Currently, markets are experiencing a surge due to ongoing or imminent global liquidity infusions in the upcoming weeks and months. Notably, the S&P 500 has been achieving new record highs at regular intervals, and the Nasdaq, traditionally a leader in performance, is approaching its own all-time highs once again.
Can $BTC stay above its bull flag?
In a setting like this, one might expect Bitcoin (BTC/USD) to thrive. However, contrary to expectations, Bitcoin has been underperforming compared to gold and the stock market so far. After breaking free from its bull flag formation, the question remains: will it manage to maintain its current level?
In simpler terms, the temporary drop in Bitcoin’s price represents its recent correction. A rapid rise occurred after a dip that confirmed the upward trend indicated by the ‘bull flag’. The price has been maintaining the Simple Moving Average (SMA) line, represented by the blue line. However, over the past few hours, a four-hour candle is moving downwards towards the intersection of the bull flag trendline and the horizontal support level from the previous peak high.
If the short-term Stochastic RSIs have reached their bottom, it’s quite likely that a bounce will occur from this support. This could potentially lead to a rise in the Bitcoin (BTC) price as the indicators are expected to reverse direction and head upwards by Tuesday, thereby generating positive momentum.
$BTC to consolidate and climb higher
The daily chart clearly shows the emergence of a bull flag pattern, with the recent corrective phase reaching the upper limit of the bull flag to confirm its breakout. Assuming no unexpected market events occur over the remainder of this week, it’s likely that the Bitcoin price will stabilize and then gradually increase, moving away from the bull flag.
Read More
Sorry. No data so far.
2024-10-22 13:10