Bitcoin is holding around the $70,000 level. Consolidation is still taking place, but take-off is imminent. The market awaits the next potentially explosive move.
Next upward phase about to begin
It’s just a matter of time. Bitcoin made a big move to get where it is now. Therefore, another period of consolidation is only to be expected. Could this period last another few days? Quite possibly. The next most important juncture is the weekly close. If $BTC can close a weekly candle body above $70,000, the next upward phase of the bull market can begin.
A promising chart
Source: Coingecko/TradingView
The weekly time frame shows a clear picture of the current position of $BTC. Presently nestling up against the top of its bull flag, and also at the 0.786 fibonacci for this entire 11 week period of consolidation, things look very promising for $BTC going forward.
Obviously, anything can happen in markets, but this set-up augurs great things for $BTC. Finally penetrating through and holding above the top of the bull flag should lead to a continuance of positive price action. The fibonacci extension levels for this move suggest a rise to $84,000, while the measured move of the bull flag would take the price to around $102,000.
With the potentially very powerful stochastic RSI crossing up from the bottom, and the indicator lines soon to cross the 20 level, a pile of momentum is about to help thrust $BTC upwards.
US Bitcoin ETFs gobble up many times daily supply
On the Spot Bitcoin ETF front, yet another big net inflow on Tuesday of $305.7 million should add to the pent-up momentum. To put this into perspective, this equates to 4.28 thousand BTC, and considering that only 450 BTC are mined into existence every day, supply is disappearing at an incredible rate - and this is just from the US-based ETFs.
“This is a gift” - Raoul Pal
As renowned macro economist and investor Raoul Pal put it “This is a gift”. He is aiming this comment at the average retail investor, who he says has the chance to “front run the institutions” and take advantage of a generational macro opportunity.
According to his many hours, days, and years of research, Pal believes that only two assets are going up, and that everything else is static. Those two assets are technology and crypto. In these current scary times, as governments look to debase their currencies in order to service their debts, having at least a toehold in crypto might not be a bad idea. Make sure to do your own research.
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.
