The week closed with bullish overtones for Bitcoin. Managing to stay above the recently reclaimed $63,000 support, the $BTC price is consolidating here while the bulls are eyeing the top of the channel at around $68,000.
A week of economic data to come
The Spot Bitcoin ETFs saw a bumper inflow of $252 million on Friday - the seventh straight day of positive inflows. On the flip side of the coin, the U.S. government Bitcoin still remains that chilling spectre of what might happen if the Biden/Harris administration decides to sell, and the Mt. Gox Bitcoin distributions have mostly been returned to creditors, who for the most part, look as though they are going to hold for now.
This week is full of data releases from the U.S. economic agencies, and given the Federal Reserve’s dovish tone on future interest rate cuts, the government will be hoping that the economy is easing into a soft landing, rather than that very hard one that some analysts are predicting.
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
If the data meets market expectations, or above, the stock market could see further gains, which is likely to have positive knock-on effects for the crypto market. Obviously, if the data is poor, short term negativity could seep into stocks and crypto, although longer term, this would make rate cuts even more pressing.
Short term $BTC breakout achieved
Source: TradingView
In the short term time frame, it can be seen that the $BTC price broke out of the bullish ascending triangle. Now, the price is trying to take hold above the $63,000 level. There is the possibility that the bulls do manage to achieve this, but there is the potential for more sideways price action, or even a retest of $61,600 in the next few days.
Bullish weekly close
Source: TradingView
Zooming out into the more macro weekly time frame, it can be seen just how important it was for the $BTC price to close above $63,000, and how it even closed above $64,000 into the bargain. $61,000 remains the all-important support level below.
Stars are aligning for $BTC once more
So what’s next? Looking at the Stochastic RSI at the bottom of the chart, it should be noted that a cross up has taken place in the indicators. This signals strong upside momentum, especially given that the indicators are now above the 20 level.
It might be expected that the price continues this strong upsurge, and that it achieves a local higher high at $70,000. Failure to manage this would result in yet another lower high, and more importantly, another failed rally.
This has to be Bitcoin’s time. The stars are aligning once more, and it just remains for the Bitcoin bulls to take advantage of this current upside momentum, and ride the price higher and out the top of the expanding wedge. If this happens, stand by for $100,000 Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
