Bitcoin is currently displaying strong bullish signals on larger time frames, indicating a potential repeat of historical price patterns. However, new indicators are emerging in the short term that require attention. Additionally, liquidity is building up above the current Bitcoin price, suggesting further upward potential.
Analyzing the 4-Day Bitcoin Chart
Upon analyzing the 4-day Bitcoin chart, analyst Josh of Crypto World noted minimal changes in the Super Trend indicator over the past day. Taking a step back to a weekly perspective unveils the last five years of price action, characterized by multiple phases of expansion and contraction. Historically, bullish trends have been marked by upward movements followed by corrections or bear markets.
Short-Term Price Action and Resistance Levels
Although the overall trend appears bullish, short-term price action may witness fluctuations. Presently, Bitcoin is encountering resistance around the $68,000 level. A daily candle closing above this point could propel the price towards $72,000. Conversely, if Bitcoin faces rejection, support is expected around $66,000.
Important Support Levels to Monitor
First Level of Support: $66,000 – Previous resistance that may now act as support.
Second Level of Support: $64,000 – Significant historical support.
A successful retest of $66,000 would confirm the breakout. Failure to maintain above this level could invalidate the bullish momentum. Currently, Bitcoin is trading above the neckline of a cup and handle pattern, with a bullish price target near $80,000. However, achieving this target will require time, likely several months, with resistance levels to overcome along the way.
Recent Bitcoin ETF Inflows
Bitcoin spot ETFs witnessed substantial inflows on Thursday, amounting to approximately $470 million. In the span of Monday through Thursday this week, a remarkable $1.8 billion flowed into Bitcoin ETFs, averaging over $460 million per trading day. This influx indicates active accumulation of Bitcoin by institutional investors, reinforcing bullish sentiment and influencing market predictions regarding Bitcoin price.
In conclusion, the current outlook for Bitcoin suggests a potential continuation of bullish trends on larger time frames, with short-term fluctuations to navigate. Institutional inflows into Bitcoin ETFs further support the positive sentiment surrounding Bitcoin’s price trajectory. Investors should closely monitor key support and resistance levels to gauge potential price movements accurately.