Bitcoin rallied to more than $63,000 on Thursday, bringing the altcoin market with it. However, a negative outflow day for US Bitcoin ETFs as well as those in Hong Kong, have put the dampers on this rally. Will bitcoin be able to continue its bounce?
Lower highs and lower lows
Bitcoin has been traversing sideways and downwards for ten weeks now. Each time there has been a rally, the $BTC price has surged up only to be defeated each time, and lower lows have been recorded, while higher highs have not.
The latest bounce was not huge, and only succeeded in knocking up against $63,000, which could be now turned into support, although this latest rally will need to force the price through this level or face going back to retest the lows once more.
One possible reason for the rally possibly petering out is the net negative Spot Bitcoin ETF outflows for both the US and Hong Kong on Thursday. Bitcoin will need these flows to become large and positive if it is to have the fuel behind it to break out of its downtrend.
Support holds firm
Source: Coingecko/TradingView
The short term time frame chart shows the latest small bounce. Looking on the bright side, the support at $61,000 held firm, and this was bolstered by a downward trend line that has been in play for the last month. That said, It could be that the price comes down once more to test this level, or perhaps even the main trend line below it.
Flipping resistance into support
Source: Coingecko/TradingView
Zooming right into the very short time frame of the hourly, it is clearer how $BTC looks to be trying to flip resistance into support, and has perhaps done so, at least on this time frame. If a bounce can occur from here, the rally is on again, and it would be great to see a higher high if $BTC can make it through $65,500.
Explosive move coming
Source: Coingecko/TradingView
Switching over to the very much higher time frame of the weekly, the bull flag is intact, and the $63,000 support looks to be holding. Volume is decreasing, and this would point to an explosive move in one direction or the other. This move is coming soon, and the weekly close should provide more information on which direction the price could potentially be going in.
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.
