After hitting the yearly high of $53,000, bitcoin is either accumulating below this level ready for the next leg up, or it is slowly rolling over to descend to better buy-in zones.
Bitcoin continues to be bought by the spot bitcoin funds, and this is helping to keep the price fairly buoyant. However, could this buying slacken off as those who wanted to test the bitcoin ETF waters have mostly done so, and are the rest of the institutions now waiting for lower prices before they get in?
Bull flag or rollover?
Source: Coingecko/Trading View
What is apparent, is that bitcoin is slowly rolling over, forming lower highs and lower lows as it goes. Of course, this is also the behaviour for the formation of a bull flag, and bitcoin does rather look like it is currently in one. The test will be whether the price holds at $50,000 and returns to the upside, or whether a breakdown occurs, and sparks a more substantial price fall.
Excellent buying opportunities await below
Source: Coingecko/Trading View
Zooming out on the weekly time frame, it can be seen that there are plenty of good support levels below the current price. These can be found at $47,000, $44,000, and $42,000. That said, if bitcoin did return to these levels, there would likely be some very strong institutional, as well as retail buying.
Future major adoption likely
For those aiming to sit in bitcoin positions for the next year to 18 months, buying these kinds of dips are excellent opportunities. No matter how much FUD is thrown bitcoin’s way by the likes of the SEC or the ECB, or any of the other 3 letter agencies or institutions, bitcoin is here to stay, and getting back to its all-time high of $69,000 would seem to be just a matter of time.
Will bitcoin enter a bear market after this? Yes, of course. Bitcoin’s history tells us that there are 4-year cycles. The bear market when it comes may well bring the price all the way back to retest the $30,000 level, if this is not tested beforehand.
That being said, if investors are looking out at a ten-year investment, these are all ebbs and flows. One thing is most likely, and that is that bitcoin will continue to attract huge interest, as an asset that is outside of a failing monetary system. For this reason, major adoption going into the future is likely to take place.
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.
