Bitcoin flashes powerful technical signals, forming both cup-and-handle and bullish flag patterns, suggesting the newest potential surge in history.
Bitcoin (BTC) has been significantly halting its $107,000 resistance level over the past three days. I jumped nearly 10% from this week’s lowest point.
What fuels the latest rally?
The US Spot Bitcoin ETF portrayed a $2.2 billion inflow this week alone. This is the third consecutive week of online addition. According to Sosovalue data, this represents a significant increase from Wall Street investors accumulated last week in the $1.02 billion.
Net inflows of these ETFs fell from $5.2 billion in May and $2.9 billion in April, with a net inflow of $4.5 billion this month. They had a cumulative inflow of $488.7 billion. So this figure could surpass the $50 billion milestone in July.
With its lowest exchange supply since 2017, market momentum appears to be in favor of bulls, setting the stage for a breakout that could surpass its $111,900 peak.
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Bitcoin Chart Analysis
BlackRock’s IBIT leads the price. The ETF has added more than $52 billion in assets. It currently holds $74.5 billion, making it one of the largest ETFs in FIDERITY’s FBTC in the US, which means it has an influx of $12 billion and currently has a $21.5 billion worth of assets.
The rising demand for Bitcoin occurs at a time when the supply of exchanges continues to decline. Santimento data shows that there are 1.21 million coins in exchange, at the lowest level since December 2017.
Daily charts show Bitcoin has been rebounding over the past few days, rising from $98,253 to $107,400. It exceeds the exponential moving average of 50 and 100 days. This is a sign that the Bulls are in control.
Bitcoin formed a bullish flag pattern, one of the most positive signs in technical analysis. This pattern consists of vertical lines and descending channels, which are part of the flag.
It also forms a cup and handle pattern consisting of a round bottom and a descending channel. This channel is part of the bullish flag.
So the most likely scenario would be to rebound and reach $111,900, perhaps the highest ever. Moves above that level will show an even higher rise, potentially reaching $115,000.
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