After breaking through the top of its bull flag, the Bitcoin (BTC) price is now consolidating above. Will Bitcoin now go on to surpass the last swing high at $70,000, or could the bulls start to run out of steam?
Strong buying from ETFs
In recent market movements, Bitcoin (BTC/USD) has managed to break out of the top of its long-standing bull flag and is currently consolidating above. This escalation in price could have been caused by some huge inflows into the U.S. Spot Bitcoin ETFs over the last five days, which have taken a total of more than $2.1 billion off of the market.
This sudden spike of buying from the U.S. Spot Bitcoin ETFs, together with renewed optimistic sentiment among investors, potentially leads the path open for the $BTC price to climb above the all-important previous swing high at $70,000.
Saylor and Trump continue to highlight $BTC
As a backdrop to the strong market demand for Bitcoin, Michael Saylor has recently commented that Microstrategy is aiming at becoming a Bitcoin bank. This potential move highlights the institutional demand for Bitcoin, particularly from traditional finance, and also underlines the growing significance of Bitcoin and cryptocurrency as financial assets.
Donald Trump continues to double down on digital assets, as his presidential campaign raises more than $7.5 million in crypto. This not only gives more credibility to the crypto sector, but is also the start of a normalisation for this type of political fundraising.
$BTC above bull flag trendline – price consolidates
Source: TradingView
In the short term time frame, the $BTC price can be seen up against a horizontal resistance level at its current price of around $68,000, with the 0.786 Fibonacci level likely to be strong resistance just above this.
It might be expected that $BTC continues to consolidate between this resistance and the top of the bull flag trend line. That said, the incredibly strong institutional buying of the Spot Bitcoin ETFs, and the all-round positive sentiment for $BTC in the market, could combine to push Bitcoin higher.
$BTC price targets
Source: TradingView
The daily time frame displays the breakout of the bull flag for the $BTC price. The Stochastic RSI price momentum indicator is showing a top, but if one looks back to the beginning of the move from the bottom of the flag in September, it can be seen that the indicator lines were able to stay above the 75.00 level for quite some time, which enabled the price to increase almost $14,000 during this period. This could happen again.
The price targets for $BTC are the blue lines that indicate the previous swing highs. These are at $70,000, $71,900, and then the all-time high at $73,800. Bitcoin may well reach its high before the end of this year, but could $100,000 also be on the cards?
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/2024/10/bitcoin-btc-consolidates-after-breakout