Key Facts: Currently, BTC is encountering resistance at $67,000. There are technical patterns that if completed, could culminate in a rise to $70,000. With the rise of bitcoin (BTC) to 66,000-67,000 dollars (USD), the market shows a change in behavior. “The daily bearish trend is over,” highlights the technical analyst known as Rekt Capital. With this he refers to the fact that bitcoin surpassed the streak of recording increasingly low maximum and minimum prices that it maintained for a month. This can be seen in the following graph.
The diagonal black line shows the downward trend that bitcoin was experiencing. Source: Rekt Capital. Furthermore, as a mark on the graph, the analyst highlights that bitcoin broke out above a daily bull flag yesterday, a technical figure that usually anticipates an increase. This pattern consists of a strong price rise followed by a period of lateralization, which is like a flagpole. “Any drop to the top of the bullish flag would not only confirm the breakout, but would also mimic a key retest similar to the one that occurred in late March (green circle on the left) that preceded the rally to $70,000,” notes Rekt Capital. For the analyst, the area around USD 64,000 could work as support in case of a fall, as occurred at the end of March. Furthermore, this price level was shown as resistance in May, before the current rally. Therefore, the market could turn this area into a new bottom if demand strengthens to rise to USD 70,000. Meanwhile, the pseudonymous trader SantinoCripto has stated that overcoming the bearish trend with a volume that he considers acceptable, “is a very good sign.” In addition to this, he emphasizes that the market appears to be consolidating an inverted shoulder-head-shoulder (HCH) patternas shown below.
The yellow stripe indicates the two peaks of the inverted HCH pattern. Source: SantinoCripto. In technical price chart analysis, the HCH pattern refers to two price rises in the middle of a higher one. This structure tends to indicate a fall, unlike when this inverted figure occurs that reflects a potential rise as it currently appears to be forming. “We only need to overcome the current resistance of USD 67,000-67,500 to fly to the 70,000-71,000 area,” says SantinoCripto in this scenario. “There we may stop for several days to consolidate the movement,” he adds. For the trader, the market will push bitcoin price to $80,000 sometime in June and perhaps to USD 100,000 before August. At the moment, the historical maximum that the currency reached was USD 73,700 two months ago. However, other financial analysts such as Florian Grummes maintain that BTC will not return to the upside until September-October. The reason is that historically, markets tend to rise from such a period and, on the contrary, tend to go down in the summer of the northern hemisphere. According to the on-chain SOPR indicator, which measures the ratio of expenses to profits, “profit taking is complete,” said analyst Willy Woo. «It took two months,» he added. He points this out given that this metric declined to the level of 1, which indicates that coins are no longer being sold (massively) at a profit. In this sense, could reduce the momentum that generated selling pressure. Woo maintains that this reflects «a very healthy restart, in a context of growing capital flows to the network.»
Entry of large banks into bitcoin boosts the price
Bitcoin's current rise has been motivated in part by a resurgence in demand for the digital currency's exchange-traded funds (ETFs) in the United States. These instruments closed their first full week with daily entries for the first time in two months, as the image shows.
Daily flow by day of bitcoin ETFs in the American powerhouse. Source: Coinglass. As BitcoinDynamic pointed out, this scenario takes place during the week It has emerged that a wave of institutional investors, including big banks like JP Morgan and Morgan Stanley, have invested millions of dollars in bitcoin ETFs. after keeping distance from the market for years.