Bitcoin (BTC) looks incredibly bullish

Regardless of the negative vibe surrounding Bitcoin (BTC) right now, which is prevalent throughout the crypto market, it continues to appear extremely promising. The current market turbulence might be a precursor to Bitcoin, the leading cryptocurrency, soaring upward. Are you still holding onto this investment?

Fear still pervades the market

The overall feeling towards Bitcoin remains predominantly anxious or fearful. In various crypto publications and social media outlets, phrases like “the big investors are offloading” can be found. The Fear & Greed Index continues to indicate fear, currently standing at 31 points. While this is an improvement over the ‘Extreme Fear’ level of 17 recorded last week, it’s clear that investors are on edge and experiencing significant anxiety.

1. The dispersal of Mt. Gox funds is occurring, and the conventional stock market remains unsettled following the Japanese nuclear disaster. With even the ‘whales’ selling off, wouldn’t it be prudent to exit now? (Informal)

If in doubt, zoom out

If you’re frequently checking Bitcoin’s price drop and it’s causing you anxiety, perhaps it’s time to reconsider your perspective and relax. A common advice from seasoned traders is: “When uncertain, widen the lens.” Instead of focusing on every $500 dip in an hourly chart, broaden your view to get a more comprehensive look at the market trends.

Each week, it’s noticeable that the Bitcoin price remains inside its bullish flag formation. A brief dip due to the yen carry trade sell-off caused the price to drop below the flag’s bottom, but this decline was temporary. Now, Bitcoin has returned and is sitting securely in the center of the flag once more.

It’s worth noting that the wick-down has once again touched the significant 0.618 Fibonacci level. This suggests that the stochastic RSI is approaching its bottom, indicating a potential resurgence of bullish momentum for the Bitcoin price within the next couple of weeks.

A solid base is forming

Looking more broadly at a two-week timeline, it appears that the candle bodies are shaping a foundation near the $59,000 to $61,000 range (indicated by orange lines). This aligns with the upper boundary of the 2021/2022 bull market as well as the 0.786 Fibonacci level, providing multiple points of support. Additionally, the two-week stochastic RSI has risen, but a definitive confirmation is pending at the end of this period.

Things look bullish. 

Eventual bullish breakout a big possibility

In approximately seven months, Bitcoin’s value skyrocketed from around $25,000 to nearly $74,000, indicating a remarkable surge. Given such a strong upward trend, a prolonged phase of stability or consolidation was essential. Could this period lengthen? Definitely, it could. However, a significant bullish breakout remains highly probable in the future.

If Bitcoin manages to break through this current flag pattern and maintains its price above $71,000, we could be on the brink of another phase in its bull market. The next significant Fibonacci level lies around $101,000, which is approximately 1.168 times the previous high. At this point, Bitcoin’s bullish trend appears robust.

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2024-08-13 20:43