Bitcoin is hovering around the $70,000 mark, with a consolidation phase underway, but signs indicate a forthcoming surge. The market eagerly anticipates the next potentially significant movement.
The next phase of upward momentum for Bitcoin appears imminent. Given the significant strides Bitcoin has made recently, a period of consolidation is natural. This phase may extend for a few more days, with the pivotal moment being the weekly close. If Bitcoin can successfully close a weekly candle above $70,000, it could signal the start of the next bullish phase.
Analyzing the weekly timeframe reveals Bitcoin’s current position, nestled against the top of its bull flag and the 0.786 Fibonacci retracement level for the 11-week consolidation period. This setup holds promise for Bitcoin’s future trajectory.
While market outcomes are unpredictable, the current setup bodes well for Bitcoin. A breakthrough and sustained position above the bull flag’s resistance could lead to continued positive price action. Fibonacci extension levels suggest a potential rise to $84,000, with the measured move of the bull flag indicating a target around $102,000.
Additionally, the stochastic RSI indicator is showing signs of a bullish crossover from oversold levels, indicating building momentum that could propel Bitcoin upwards.
The influx of funds into US Bitcoin ETFs further reinforces this bullish sentiment, with a substantial net inflow of $305.7 million on Tuesday alone. This influx, equivalent to 4.28 thousand BTC, highlights the rapid depletion of available Bitcoin supply, particularly from US-based ETFs.
Renowned economist and investor Raoul Pal views the current market conditions as an opportunity for retail investors to capitalize on a generational macro trend. He emphasizes the significance of having exposure to crypto assets amid global economic uncertainty, echoing sentiments that only technology and crypto assets are on an upward trajectory.
Pal’s perspective underscores the potential of crypto assets as a hedge against currency devaluation and debt servicing issues faced by governments worldwide. However, it’s essential for investors to conduct thorough research before making investment decisions.
