As the hype over the impending Spot Bitcoin ETF announcement builds, a buying frenzy is taking over the crypto market. What is $BTC going to do when the news finally drops?
Bitcoin held firm as it reached down to make another touch of its upward trendline early on Monday, and once that had happened it was all systems go.
A big green candle
Source: Trading View
Monday’s green candle encompassed 9.3% from absolute bottom to the top, and managed to break out of the upward wedge - a hugely bullish move.
Price ready to surge once again
On Tuesday, the price has so far confirmed the top of the wedge. However, in a shorter time frame the price is coming down to the top of the wedge once again. Both the 4-hour and 8-hour stochastic RSIs have crossed downward, so it wouldn’t be a complete surprise to see the price enter back into the wedge, thereby making the breakout a fakeout.
Be that as it may, with Wednesday penned in by many as the potential day for the SEC to make its announcement, this short term price action can probably be completely ignored, as a spike up into the $48,000 to $50,000 area could certainly be imagined.
Bull flag forming?
Source: Trading View
Also, zooming in to the hourly time frame, a potential bull flag is developing. A break out of this flag gives a measured move to around $50,000, which is very likely to be a popular area for traders to take profits.
$BTC heading towards huge obstacle
Source: Trading View
Finally, zooming right out to the weekly time frame, a lot of confluence is pointing to the level of $48,000 to $50,000 as an area that is likely to be a huge obstacle for $BTC. A 4-year trend line, resistance, and the 0.618 fibonacci level could be the factors that force $BTC back down again.
If this does become the case, $30,000 would be an ideal level for $BTC to make its way back to, given that this is the top of bitcoin’s base price structure. Even though this is a big correction of around 40%, it would be extremely good for a healthy continuation of the bitcoin bull market.
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.
