Bitcoin broke out of its bull flag on Wednesday, although the $BTC price has not immediately surged upward. Is this just a short period of consolidation before moving higher, or could this be yet another fakeout?
Not cut and dried yet
Source: TradingView
The first three days of this week have been quite bullish for Bitcoin, and the price increased more than 5%, taking it through the top of the long standing bull flag after its fourth attempt, and where it now holds above on Thursday.
However, things are certainly not cut and dried yet. A daily close above the top of the bull flag is required, and probably two or three more daily closes above would be even better. Then there is the resistance at $71,300, which needs to be flipped into support, and only then can $BTC move on to test the all-time high at $73,700.
Tug of war for rest of this week?
Nevertheless, it does look like Bitcoin can be successful this time. Although on the shorter term time frames the stochastic RSI indicator has momentum moving to the downside, countering this is the big buying pressure coming in from the Spot Bitcoin ETFs. If this tug of war can continue, perhaps for the rest of this week at least, the 4-hour and 8-hour RSIs can come down and reset.
Retest of support?
Source: TradingView
In the short term, it may just be that the $BTC price does come back inside the bull flag. This could bring the price back to the $69,000 support, which could also coincide with the upward trend line.
All this said, even if $BTC does come back down to retest the support, the strong buying from the Spot Bitcoin ETFs is likely to continue, and once the price is confirmed above the flag and resistance, the next bull market surge could be upon us.
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.
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