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.
BTC Price Chart | Source: crypto.news
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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