The BTC/USD pair has come back down to the $64,500 horizontal level, which it has only recently flipped into support. Will Bitcoin bounce from here and break through the top of its bull flag, or is yet another rejection about to take place?
Will the $64,500 horizontal support hold?
Bitcoin is still on course to break out of its six-month bull flag. That said, many might be nervously watching the number one cryptocurrency as it teeters at the $64,500 horizontal support level.
It seems that Bitcoin hardly ever takes the easy route. Its path is nearly always tortuous, at least as far as investors and traders are concerned. It might have appeared to be straightforward for the $BTC price to just continue its recent upswing, and just power through the top of its bull flag on its way to a new high.
Source: TradingView
None of it. The $BTC price has come all the way back down to what was previously strong resistance at $64,500. That said, this is also the bottom of the ascending channel. For $BTC to make this move is more or less perfect from a technical analysis point of view.
Nevertheless, if the price were to crash down through the bottom of the channel, also breaking the ascending trend line, and then go on to make a lower high below $62,400, it might be admitted that there was cause for concern.
However, as things stand, everything is normal, and Bitcoin is still on target to break through its bull flag, and this possibly at some time during this unfolding week.
U.S. Spot Bitcoin ETFs buy another $1.1 billion in $BTC
Over at the U.S. Spot Bitcoin ETFs, the institutions are continuing to buy strongly. Friday saw a 7.6K net inflow, equivalent to $494.8 million. These net purchases are now almost uninterrupted, with the last net outflow back on 18 September, at only $52.7 million.
In fact, the institutions bought a total of $1.1 billion worth of $BTC. This is the largest amount they have bought since July, and looks to be signalling a new wave of institutional buying that could send Bitcoin much higher.
Trend continues up, but support must hold
Source: TradingView
Zooming out into the macro weekly chart for Bitcoin, it can be seen that the top trend line of the bull flag is not far above the current price. That said, the support level really needs to hold.
At the bottom of the chart, the Stochastic RSI, both indicator lines are still rising, signalling strong price momentum. While at the same time, the Relative Strength Index is showing a break of the downward trend line. However, a higher high needs to be showing by the end of this week.
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.
Source: https://cryptodaily.co.uk/2024/09/bitcoin-btc-at-critical-juncture-bounce-or-rejection