Bitcoin has finally broken out of its long-standing bull flag, but the question on everyone’s mind is whether this is just a short period of consolidation before moving higher or yet another fakeout.
The price of Bitcoin has increased by over 5% in the first three days of the week, taking it through the top of the bull flag for the fourth time. However, a daily close above the top of the flag is still required to confirm the breakout. Additionally, there is significant resistance at $71,300 that needs to be flipped into support before Bitcoin can move on to test the all-time high at $73,700.
Despite the uncertainty, the technical indicators are looking bullish. The stochastic RSI indicator is showing momentum moving to the downside on shorter time frames, but the big buying pressure coming in from Spot Bitcoin ETFs is countering this. If this tug of war can continue for the rest of the week, the 4-hour and 8-hour RSIs may come down and reset, setting the stage for a potential new uptrend.
In the short term, it’s possible that the price of Bitcoin could come back inside the bull flag, bringing it back to the $69,000 support and the upward trend line. However, even if this happens, the strong buying pressure from Spot Bitcoin ETFs is likely to continue, and once the price is confirmed above the flag and resistance, the next bull market surge could be upon us.
For now, investors will be watching closely to see if Bitcoin can sustain its breakout and move higher, or if this is just another fakeout in a long series of false starts.
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Source: Cryptodaily
