Bitcoin’s price has faced several challenges since early June. Long-term holders have been taking profits, miners have been selling to stay profitable after the halving, and Wall Street hedge funds have been dampening the price with their “carry trade” strategy.
Some on social media are even predicting the end of the bull market, claiming the peak was at $73,800 and Bitcoin has been declining ever since.
Is this the end of the bull market? Probably not. Bitcoin has historically had bull markets lasting around three years. With institutions now involved, it’s unlikely this bull market will be cut short.
Bitcoin Channel Breakout
In the daily short-term time frame, Bitcoin’s price is attempting a breakout from its downward channel. This pattern is bullish, but the top trend line of the channel and resistance at $66,000 are currently containing the price.
Momentum Indicator is Key
Looking at the weekly time frame, the resistance seen in the daily chart is actually support. Stronger support at $64,000 held the price on Tuesday, as shown by the wick down to this level.
A major concern is the stochastic RSI on the weekly chart. This momentum indicator has crossed down, suggesting a possible double dip. Even if this happens, it likely won’t be long before the indicator hits the bottom and starts to rise again, bringing back important momentum.
If Bitcoin breaks out and the price appreciates by the end of the week, the fast (blue) and slow (red) indicator lines could cross over, signaling positive price momentum as early as next week. Additionally, hidden bullish divergence might soon play out, further supporting a potential uptrend.
Conclusion
While Bitcoin’s price faces significant resistance and mixed signals from momentum indicators, the potential for a breakout remains. Investors should watch for further developments, especially regarding support levels and momentum indicators.