A weekly candle close above $69,000 (the top of the previous bull market) means that bitcoin could be ready to rip upwards. A breakout of its bull pennant on Monday could be the beginning of the next huge leg upwards.
A strong weekly close
An extremely important hold above the all-time high of the 2021 bull market can provide bitcoin with the base to move much higher. A strong break of the bull pennant within which the price has been traversing since mid-March, could provide the impetus for the next all-time high, and a move into price discovery for the king of the cryptocurrencies.
$BTC crashes through top of bull pennant
Source: Coingecko/Trading View
As can be seen in the short term 4-hour chart above, $BTC has just crashed through the top of the bull pennant, and is also looking to break resistance. This resistance is the last before the top at just short of $74,000, so a break here may see the $BTC price surge to $74,000 very quickly.
That said, there could be a small retrace to the top of the triangle at around $70,000 in order to confirm the break. This would be quite a standard move, and one should expect a continuation to the upside once/if this happens.
$BTC buyers outmatch the sellers
Strong buying continues to occur on a daily basis for bitcoin. The Blackrock Spot Bitcoin ETF (IBIT) had a big inflow of more than $309 million on Friday, which more than compensated for the $199 million that was sold out of the Grayscale ETF (GBTC).
The Blackrock announcement that it was adding five companies to its Bitcoin ETF as Authorised Participants, could also add to the waterfall of money cascading into IBIT. Among these five, Goldman Sachs, Citigroup, and UBS, are certainly not short of funds to enter into the ETF.
The Genesis selling of $2.1 billion from its Grayscale ETF holding is now complete, and the US government sold a further 31800 BTC from its Silk Road confiscations last week, which was also eaten up in short order by the buyers.
Financial history being made
Investor and tech entrepreneur Mike Alfred posted the following on his X account:
I have spent the weekend doing an exhaustive analysis of Bitcoin’s fundamentals and technicals and have determined that BTC has approximately $11,420 of downside and $245,805 of upside in the next 9-12 months. This is asymmetry rarely seen in financial history. Be smart out there
— Mike Alfred (@mikealfred) April 7, 2024
Alfred is not the first to talk about the crazy “asymmetry” between the small potential downside for $BTC, compared to its massive upside. Of course, he and the others might be wrong, but the opportunity to be on the right side of an asset that is making financial history is one that may not want to be missed.
At time of going to press, $BTC has powered through the resistance and has hit $72,000. A new all-time high is very close.
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.
