Bitcoin’s consolidation period is still ongoing, but it is coming to an end. The $BTC price has been sold heavily since attaining the all-time high, but has been just as heavily bought back up again. The start of the next ascent, possibly to $100,000 is not far off.
Tenth week of sideways action for $BTC
Bitcoin is now in its tenth week of sideways price action. This is one more week than the last period of accumulation that began in early December last year. However, this time, there is a lot more volatility, and the price of $BTC has seen some huge weekly wicks - mostly to the downside.
ETFs and other buying
The inflows to the US Spot Bitcoin ETFs have admittedly dried up quite a bit since those heady buying sprees at the beginning of March, and net outflow days have been more common. That said, the Hong Kong ETFs are now on stream, Mr 100 continues his own buying spree, and the first huge companies such as Susquehanna are buying into the ETFs to the tune of more than $1.3 billion.
From where is the bounce?
Source: Coingecko/TradingView
In the short term time frame of the 4-hourly, the $BTC price is traversing its way along the top half of a triangle, or what could possibly be a descending triangle, if the support at $61,400 is taken as the bottom of the triangle. If the support doesn’t hold, the bottom trend line would mark the boundary, and perhaps a bounce might even take place from there.
From bull flag to $100,000
Source: Coingecko/TradingView
However, it’s on the weekly time frame where the picture looks the most bullish for bitcoin. Even though the touch points aren’t perfect, it really does look like the $BTC price is inside a bull flag. The long candle wicks down bear testament to the bulls buying the price back up every time.
What’s more, the stochastic RSI is starting to curve as it reaches the bottom. It can be imagined that a cross back up could take place as early as the start of next week. The resulting momentum coming back under the $BTC price would potentially have the effect of propelling it out the top of the flag. The measured move for this bull flag is to around $100,000. Hold on to your hats!
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.
