Bitcoin (BTC) still biding time before ascent to $100,000

As a researcher with several years of experience in the cryptocurrency market, I strongly believe that Bitcoin’s consolidation period is nearing its end and the next ascent to new all-time highs is not far off. The current sideways price action, which has lasted for ten weeks now, is more volatile than the previous one, but it also shows signs of accumulation.

The Bitcoin market is currently in a holding pattern, nearing its conclusion. After reaching its peak and experiencing significant selling pressure, the cryptocurrency’s price has seen substantial buying interest, preventing any major drops. It’s likely that another surge towards $100,000 isn’t far from occurring.

Tenth week of sideways action for $BTC

As a crypto investor, I’ve noticed that Bitcoin has been trading sideways for the past ten weeks – that’s one week longer than the previous accumulation phase which started in early December last year. However, this current period is markedly more volatile than before. In fact, Bitcoin’s weekly candlesticks have shown some significant wicks, with most of them pointing downwards to sizeable price drops.

ETFs and other buying

The demand for US Spot Bitcoin Exchange-Traded Funds (ETFs) has noticeably decreased since the intense purchasing activity in early March. Conversely, there have been more instances of outflows. However, it’s worth mentioning that Hong Kong ETFs have recently started operating, major players like Mr 100 are still buying aggressively, and prominent institutions such as Susquehanna have invested over $1.3 billion in these funds.

From where is the bounce?

As a crypto investor, I’m closely monitoring the short-term price action of Bitcoin (BTC). At the moment, the $BTC price is moving within the upper part of what appears to be a triangle formation on the 4-hour chart. If we consider the support at $61,400 as the triangle’s base, then this could potentially turn into a descending triangle. However, if this support level fails to hold, the trendline forming the top boundary of the triangle would act as resistance. A possible bounce might occur from this area, providing an opportunity for entry or exit depending on one’s investment strategy.

From bull flag to $100,000

From my perspective as a researcher studying the Bitcoin market, the most optimistic outlook emerges when examining its weekly performance. Although ideal alignment isn’t complete, the signs point to an ascending bull flag formation. The significant wicks on the long candles suggest that buyers have consistently stepped in to push the price back up after each minor decline.

What’s more, the stochastic RSI is starting to curve as it reaches the bottom. It can be imagined that a cross back up could take place as early as the start of next week. The resulting momentum coming back under the $BTC price would potentially have the effect of propelling it out the top of the flag. The measured move for this bull flag is to around $100,000. Hold on to your hats!

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2024-05-08 14:08