Bitcoin (BTC) has experienced a robust recovery, breaking free from its June downtrend and positioning itself for potential gains. This upward movement follows the formation of a new higher low on the weekly chart, a signal often interpreted as bullish. After a challenging April, in which post-halving adjustments led to a 50% reduction in mining rewards, Bitcoin is showing renewed vitality, with recent actions suggesting that $63,000 has become a strong foundation.
At the start of July, Bitcoin managed to secure a daily close above $63,000, transforming this previously resistant level into a new support. This shift was not just symbolic but was bolstered by substantial trading volume. The significance of this price point was further emphasized by a notable increase in spot Bitcoin ETF inflows, with over $129 million recorded on July 1st alone—the highest influx in three weeks.
The combination of breaking out of a downtrend, forming a higher low, and defending the $63,000 level with significant volume suggests a positive outlook for Bitcoin’s price. Investors are closely watching these developments, as they may signal a continuation of bullish momentum in the coming weeks.
Bitcoin to Hit New Heights: Bull Flag Formation Signals Upcoming Price Surge
Rekt Capital suggests that Bitcoin may be forming a macro bull flag pattern. This pattern occurs when the price consolidates within an upward channel before breaking out again, leading to further price increases.
The recent data shows the largest inflow in the past three weeks, indicating growing investor confidence as Bitcoin begins to rebound from its lows.
A bull flag pattern signifies a period of consolidation before another significant upward move for the asset, making it a continuation pattern.
READ ALSO : Bitcoin (BTC) Ascends Beyond Crucial $61K Threshold, Will the Market Maintain Momentum?
Bitcoin’s Consolidation Phase Sets the Stage for New Heights
The consolidation phase between $59k and $72k, following the post-halving price action, aligns with previous cycle highs and lows. This phase is supported by on-chain metrics like the Exchange Supply Ratio (ESR) and Spent Output Profit Ratio (SOPR), both indicating that Bitcoin remains in a broader accumulation phase. This suggests that BTC could soon break above its current high of $64.8k and continue its upward trajectory.
Additional Bitcoin analysts have noted increasing investor confidence in the cryptocurrency, buoyed by strong performances from spot Bitcoin ETFs. Eric Balchunas of Bloomberg highlighted in a tweet that, despite recent underperformance relative to mining stocks and broader market conditions, Bitcoin ETFs have maintained consistent positive net flows.
This accumulation phase, reinforced by on-chain data and investor sentiment, positions Bitcoin for potential significant gains in the near future.
Bitcoin (BTC) is currently trading above its 9-day Simple Moving Average (SMA) at $61,526, signaling short-term bullish support. Immediate resistance is found near the $66,513 level; breaking this could pave the way towards retesting the higher resistance around $72,230, seen earlier this year. Conversely, if momentum falters, support at $61,526 could fail, with the next support level at $58,507. Dropping below this would likely reinforce bearish sentiment and lead to further downside.
Despite a promising start to 2024, Bitcoin’s performance has lagged behind other cryptocurrencies like Hut 8 and Bitfarms, which have surged by 86% and 34%, respectively. This discrepancy is largely attributed to the efficiency and scaling capabilities of larger miners following the halving event.
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