On the weekly timeframe, Bitcoin is currently displaying an indecision candlestick pattern. The closing level on Sunday will likely offer insight into the next move for the leading cryptocurrency.
Following its surge to a new all-time high in March, the Bitcoin price has experienced significant volatility. This isn’t surprising, considering the importance of this level and the fact that BTC saw a 375% increase over about 16 months to reach it.
BTC Price Holds Firm Above Triangle and Support
After recently breaking out of a triangle pattern it had been confined within since March 14, the BTC price is now consolidating above it. With the major support level at around $69,000, and the price hovering near the top of the triangle, things are looking positive for BTC.
Weekly Candle Close Holds Key Significance
On the weekly timeframe, there are also positive signs. The price is maintaining its position comfortably above support, and the succession of higher lows, many of which have long lower wicks, is guiding the BTC price toward a pivotal moment.
Last week’s candlestick formation, resembling a hanging man, often indicating a potential market reversal, makes this week’s candlestick print on Sunday crucial. Currently, the candlestick shows almost equal wicks on both ends, indicating market indecision regarding its next direction.
However, considering all factors, BTC remains firmly in an uptrend, and as long as this trend persists, the bulls retain control. Speculation about the implications of the halving is rife on social media, with many predicting a downturn around this time.
Yet, it’s worth considering that circumstances may be different this time. Positive inflows into US Spot Bitcoin ETFs continue, and with Hong Kong set to launch Bitcoin ETFs soon, along with plans for similar launches in South Korea and China, demand pressure is poised to increase.
Massive Supply Shock on the Horizon
However, approximately 90% of Bitcoin ETF purchases still come from retail investors. Consequently, with the mining supply set to halve from 900 to 450 BTC per day, a significant supply shock is imminent.
Despite this, much of the world remains unaware of these developments, largely due to mainstream media’s allegiance to governments and the banks they serve.
Nevertheless, keeping Bitcoin under wraps as it surges past $100,000 will prove challenging. Imagine the millions of retail investors seeking to invest in an asset that behaves differently from bonds, most stocks, shares, and, crucially, their own national currencies.
