Bitcoin ($BTC) is continuing to rise to new highs. On Tuesday, the world’s premier cryptocurrency stopped just short of $94,000, with yet another all-time high. Is this buoyant price action set to continue, or is a top approaching?
Buying frenzy continues
At least as far as purchases of $BTC goes, things are extremely positive for those holding Bitcoin. Heavy buying has taken place over the last few days, and this looks as though it will continue.
Michael Saylor’s MicroStrategy has bought almost 78,000 BTC, in two tranches, in less than two weeks. No sooner had MicroStrategy made the second purchase, the company announced that it was making a $1.75 billion debt offering with which to buy more.
The idiom “it never rains but it pours” could be used to describe the frenzy of buying that is now taking place for the scarcest major asset in the world.
If just one company can buy up the equivalent of almost 6 months of Bitcoin issuance in the space of a couple of weeks, it has to be wondered what will be the state of affairs for the availability of Bitcoin into the next few months?
It can only be imagined the feeding frenzy that could take place if Senator Lummis is able to get the U.S. Bitcoin Strategic Reserve legislation through a republican dominated Congress and Senate.
Retail no longer the buying force it was for Bitcoin
One perhaps sad aspect in all this positive news, is that this buying is being carried out in the vast majority by institutions. Many retail buyers and holders have been flushed out of the market, and future buying is predicted to be on behalf of company treasuries, pension funds, hedge funds, family offices, etc, etc.
When Satoshi Nakamoto set the Bitcoin wheels in motion, he was certainly thinking that his invention was more to throw a lifeline to those poor individuals being ground down by the banking system, than huge multinational companies and their like.
Next $BTC breakout could be soon
Source: TradingView
The short-term chart for Bitcoin shows that price action could be tracking within an ascending triangle. However, with the price action still continuing to develop, the position of the upper trendline is still not certain.
What is known though, is that if the pattern is an ascending triangle, $BTC does not usually carry on to the end of the triangle, and instead, is likely to break out before this, meaning that the breakout could take place very soon.
Could the bull market end early in 2025?
Source: TradingView
The big picture for Bitcoin can be found on the 2-month chart. This shows the current huge candle body that is still growing, and has until the end of December before it is complete.
That said, below this price action is the Stochastic RSI. This indicates that momentum is still in Bitcoin’s favour. However, the indicator lines are at the top, and they will cross down at some point. If one goes back to the 2017 bull market, it can be seen that the indicator lines stayed at the top for five successive candles, which is the equivalent of 10 months. If the current bull market matches this, there could be one more 2-month candle left in the tank. This could mean that the bull market ends early in 2025. Where could the $BTC price get to by then? Or could there even be a double top as in the 2021 bull market?
The Relative Strength Index at the bottom of the chart is showing that $BTC is now overbought. The indicator line could top out when it meets the descending trendline. Or, if the buying is frantic enough, the line could even penetrate the trendline and continue higher.
Interesting times are ahead.
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/2024/11/bitcoin-btc-makes-new-all-time-high-just-short-of-94000