It’s been a while in coming, and many investors have likely been shaken out over the last six months, but the next price surge for Bitcoin (BTC) could be a short time away. How far can Bitcoin climb this time?
The positives
After months of pessimistic talk about Bitcoin, the positives are starting to come to the fore. For example, there is the potential creation of a Bitcoin Strategic Reserve in the U.S., should Presidential hopeful Donald Trump make it to the White House again.
The U.S. Spot Bitcoin ETFs have returned to mostly net inflows, after a period when a record 8 days of uninterrupted outflows set the nerves jangling among some of the institutional players.
And then there is the adoption of Bitcoin on a State level. El Salvador continues to buy one Bitcoin a day, to add to its growing stack of 5,867 $BTC. President Bukele is as firm as ever in his commitment to hoarding and increasing his country’s holdings of the scarcest asset on the planet.
Then, talking of the smaller scale countries, taken from a report by FirstPost, the tiny mountain kingdom of Bhutan has been discovered to be the fourth largest holder of Bitcoin as a nation State - only behind the U.S., China, and the UK, ranked by the amount of $BTC held. Bhutan’s 13,093 $BTC has been mined, taking advantage of its massive hydropower resources.
Finally, among many other positives for Bitcoin, the main driver of Bitcoin’s price over the next few months is likely to be the inexorable increase in global liquidity. The Chinese central bank recently announced, reported on in an article by CoinTelegraph, that the equivalent of $140 billion would be introduced into the Chinese economy, and this on the back of the same amount that was injected into the financial system back in January this year. Other major central banks are also likely to insert plenty of stimulus into their respective economies.
$BTC price rises in ascending channel
Source: TradingView
Looking at the short term price action for $BTC, it can be seen that the price is continuing to rise inside an ascending channel. A recent retest of the channel bottom would likely now lead to the price rising to potentially surpass the local high at $65,050. This would be a higher high, and would reverse the trend to the upside.
Macro indicators also positive
Source: TradingView
On the weekly time frame, things are looking a lot rosier. The $BTC price is rising towards the top of the bull flag, with the tops of the last bull market a main horizontal resistance level just above.
At the bottom of the chart, the Stochastic RSI is signalling a big swing to the upside for price momentum. While the Relative Strength Index (RSI) is signalling that a trend reversal is nigh.
These indicators will provide confirmed data at the end of the week, and if they are both rising going into next week, the $BTC price would be expected to rise with them.
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.
