Bitcoin (BTC) Shows Strong Bullish Signals on Larger Time Frames

Bitcoin is currently showing strong bullish signals on larger time frames, hinting at a potential repeat of historical price patterns.

Bitcoin displayed strong bullish signals on larger time frames on Friday, suggesting a potential repeat of historical price patterns. However, in the short term, new indicators emerged that warranted attention. Furthermore, liquidity was accumulating above the current Bitcoin price, hinting at further upward potential.

Analyzing the 4-Day Bitcoin Chart

Examining the 4-day Bitcoin chart, minimal changes were observed in the Super Trend indicator over the past day. Zooming out to a weekly perspective, the last five years of price action were visible, showcasing multiple phases of expansion and contraction. Historically, during bullish trends (or bull markets), upward movements followed by corrections or bear markets were seen.

Short-Term Price Action and Resistance Levels

While the larger trend appeared bullish, short-term price action may still experience fluctuations. Currently, Bitcoin faced resistance around the $68,000 mark. If a daily candle closes above this level, we could see upward movement toward $72,000. If Bitcoin faces rejection, support was anticipated at around $66,000.

Important Support Levels to Monitor

First Level of Support: $66,000 – Previous resistance that may now act as support.

Second Level of Support: $64,000 – Significant historical support.

If the price successfully retests $66,000, this would confirm the breakout. A failure to maintain above this level could invalidate the bullish momentum. Currently, Bitcoin traded above the neckline of a cup and handle pattern, with a bullish price target near $80,000. However, reaching this target will take time, likely several months, and the price will encounter resistance along the way.

Recent Bitcoin ETF Inflows

On Thursday, Bitcoin spot ETFs experienced substantial inflows, totaling approximately $470 million. This week alone (Monday through Thursday), there has been a staggering $1.8 billion influx into Bitcoin ETFs, averaging over $460 million per trading day. This trend suggests that institutional investors are actively accumulating Bitcoin, further solidifying bullish sentiment and influencing Bitcoin price predictions in the market.

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