Still above $30,000, bitcoin looks to be gathering strength to make that all-important break of the $31,000 level.
The crypto market is in calmer waters currently as it looks to bitcoin to make that definitive move past $31,000. Given the sheer scale of the resistance above, bitcoin will need to gather the help of all the bulls in order to be successful.
One of its main weapons to surpass the resistance will be momentum, and short term Stochastic RSIs are resetting to the bottom as bitcoin traverses sideways.
The daily timeframe RSI would be a major help, and this is now passing the halfway point on its way down. Once at the bottom and the signal lines cross up this can be a major sign that bitcoin has the impetus to make the break.
Bullish chart patternsHaving started this particular attack on resistance on June 15, the price reached a high on June 23 before traversing sideways, forming a bull flag as it went. The measured move for the flag is $36,000, the next real level of resistance after $31,000.
Another, even more bullish chart pattern has reached completion. This is a potential cup and handle pattern that started to form in early June 2022. The cup was completed on April 14 this year, and now the handle has also been completed. The measured move for this would be a massive move to $46,000.
Institutional buying just around the cornerIf one takes into account the potential for enormous institutional buying should the Blackrock Spot Bitcoin ETF, and others be approved, then the second of these technical targets wouldn’t be out of bitcoin’s reach.
In spite of impending regulation for cryptocurrencies and all sorts of log jams being thrust into the sector by traditional financial agencies that now see crypto as a real threat to fiat currencies, the mood in the crypto sector is certainly a lot better than it was back in the depths of crypto winter back in November last year.
Regulation should have the effect of bringing in much larger capital into the space, and although this is also likely to bring in a lot of the unfairness against the average investor and bias towards the institutions just as it is in the traditional financial system, it is to be hoped that the market and changing technology will bring about a more level playing field.
Even if a rejection for bitcoin happens now, instead of the widely expected breakthrough, this is only likely to be a temporary setback. Just a quick glance at how banks and fiat currencies are doing right now is enough to solidify that scenario.
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.
