Bitcoin indecision – major move coming after weekly close

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Bitcoin‘s weekly chart shows an uncertainty candle formation as of now. The closing price on Sunday will likely give us a clearer indication of Bitcoin‘s future direction in the crypto market.

After reaching an unprecedented peak in March, the value of bitcoin has experienced significant fluctuations. It’s normal for this to occur since bitcoin increased by an impressive 375% over approximately 16 months to reach that level.

$BTC price holds above triangle and support

The price of Bitcoin had just exited a triangle it had been following since mid-March. Now, it’s consolidating above this triangle. Hovering near the top of the triangle with significant support at around $69,000, the outlook for Bitcoin looks optimistic.

Weekly candle close will be critical

On a weekly basis, Bitcoin’s price shows potential for further growth. It currently hovers above its support level, while successive lower highs with elongated wicks beneath suggest an imminent critical juncture.

This past week’s candle shape was a hanging man, typically indicating a market reversal. The upcoming candle formation on Sunday will be crucial in determining the market’s next move. Currently, the candle has an equal length of wick pointing up and down, reflecting the market’s uncertainty about which direction to trend.

Things are different this time

Despite the various factors at play, it’s important to note that Bitcoin ($BTC) continues to trend upward. The bulls remain in charge until this uptrend is disrupted. Social media is abuzz with speculation surrounding the halving event, and some predict a price drop may occur around this time.

Despite this, it can be contended that the situation is distinct this time around. The inflow of funds into US Spot Bitcoin ETFs remains robust. In the coming days, Hong Kong will introduce Bitcoin ETFs, and soon after, South Korea and Chinese fund managers are set to launch their own Bitcoin ETFs. As a result, the pressure for demand is expected to intensify.

Gargantuan supply shock incoming

Approximately 90% of Bitcoin ETF purchases continue to come from retail investors. Consequently, a significant reduction in Bitcoin mining output from 900 to 450 Bitcoins per day is imminent, leading to an unprecedented disruption in the supply chain.

Many individuals globally remain oblivious to current events, largely because in the Western world, the media is heavily influenced by governments and financial institutions that wield significant power over them.

Despite the challenge of holding back from buying bitcoin when it soars past and surpasses $100,000, doing so will be hard to resist for many. Picture countless retail investors eagerly vying to acquire an asset that goes against the grain of bonds, most stocks and shares, and significantly, their own national currencies.

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2024-04-12 13:03