Bitcoin’s price failed to break out of its bull flag and overcome major resistance at the end of last week. After a significant drop on Friday followed by a flat weekend, the question arises: What’s next for Bitcoin?
Another Rejection – Will Bitcoin Continue Downward?
Bitcoin is struggling to break free from its bull flag, continuing to trade sideways. On the daily chart, this marks the fourth time Bitcoin has attempted to break the downsloping trend line, only to be rejected again.
Many are asking: “Was the top reached in March at $73,800, and has Bitcoin been weakening ever since?”
The long-term outlook for Bitcoin remains uncertain, but it’s important to remember that it’s still in a bull market until proven otherwise. Bull flags typically break upward, offering hope for a positive trend reversal.
Huge ETF Inflows vs. Huge Hedge Funds Short
Spot Bitcoin ETFs are seeing massive inflows, with $1.83 billion pulled in last week alone. Simultaneously, hedge funds are heavily shorting Bitcoin. This intense battle between bulls and bears will soon resolve, likely leading to a significant market move.
Short-Term Bounce Likely
In the short term, Bitcoin’s price is holding critical support at $69,000. A higher high was recorded on Friday, and a higher low could be forming. This suggests a likely short-term bounce from this level.
Big Move Coming Soon for Bitcoin
On the daily chart, the overall trend still appears positive. Although the uptrend since May 1 might be at risk of breaking, such trends inevitably do. The key is that the $69,000 support remains intact, and trading volume continues to decline.
A major move is on the horizon. The market may either surprise everyone by dropping Bitcoin to the $60,000 level one last time or finally breaking through the top of the bull flag, piercing resistance, and setting a new all-time high.
As always, while no one can predict Bitcoin’s long-term trajectory with certainty, the current indicators suggest a significant shift is imminent. Investors should stay vigilant and prepared for whatever direction the market decides to take.
