On the weekly time frame bitcoin is currently printing an indecision candle. Sunday’s closing level should provide a good idea of where the king of the cryptocurrencies is going next.
Since hitting a new all-time high in March, the bitcoin price has been rather volatile. This is only to be expected given the importance of the level and the fact that $BTC rose 375% in around 16 months in order to get there.
$BTC price holds above triangle and support
Source: Coingecko/Trading View
Having not long left a triangle the $BTC price was traversing within since 14 March, the price is now consolidating above. Bumping along the top of the triangle, with the major $69,000 support below, things are looking promising for $BTC.
Weekly candle close will be critical
Source: Coingecko/Trading View
On the weekly time frame things also look promising. The price is holding nicely above the support, and with the series of higher lows, of which most have long wicks below, the $BTC price is being funnelled towards a crunch point.
Last week’s candle being a hanging man, which normally signifies a market reversal, this week’s candle print on Sunday will be critical. So far the candle is showing as much of a wick to the upside as there is to the downside, meaning that the market is still indecisive as to which direction to take.
Things are different this time
However, with all taken into consideration, $BTC is still very much in an uptrend, and until this is broken the bulls are still in control. Social media is full of the possible implications of the halving, and many are calling for a dump around this time.
That said, it might be argued that things are different this time. Positive inflows into the US Spot Bitcoin ETFs are continuing. With Hong Kong launching Bitcoin ETFs in the next few days, and South Korea, and Chinese fund managers launching their Bitcoin ETFs in the near future, the demand pressure is only going to increase.
Gargantuan supply shock incoming
With that said, around 90% of the Bitcoin ETF buying is still from retail. Therefore, with the mining supply about to be cut from 900 to 450 $BTC per day, the most ridiculous supply shock is about to take place.
Most people around the world are still blissfully unaware of what is happening, due in no small part, at least in the West, to a mainstream media that is subservient to governments and the banks that control them.
Nevertheless, keeping bitcoin on the lowdown when it rockets towards and beyond $100,000 will be almost impossible to achieve. Imagine the millions of retail investors who will be trying to buy an asset that is doing the exact opposite to bonds, most stocks and shares, and more importantly, their own countries’ fiat currencies.
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.
