The Bitcoin (BTC) price is consolidating nicely above $94,000. However, the anticipated surge back over $100,000 has still not materialised. Is Bitcoin waiting for some kind of catalyst, or will it continue the upward grind as it passes through resistance laid down since late last year?
The market can be as irrational as it likes
Top indicators for Bitcoin, such as the Stochastic RSI, RSI, and the MACD, are providing very positive signalling for the king of the cryptocurrencies on the weekly time frame. Therefore, some might be wondering why a substantial surge hasn’t taken place yet?
Firstly, the market is the market, and it can be as irrational as it likes, for as long as it likes. Secondly, there are just so many factors that affect the market, that it is just about impossible for anyone to take them all into account and calculate their impact at any given time.
ETFs and treasuries buy vigorously
Nevertheless, there are still plenty of reasons for Bitcoin holders to be glad. The U.S. Spot Bitcoin ETFs bought 6.31K BTC on Monday, adding to the 33.5K Bitcoin that was bought last week.
40,000 BTC in just 6 trading days for the ETFs, another 15,355 BTC for Michael Saylor’s Strategy, and an increasing group of corporate and sovereign treasuries also plundering what they can, is contributing to a general ‘number go up’ environment.
$BTC price coming to decision point
Source: TradingView
The short-term time frame for $BTC shows that the price is funnelling into the apex of a triangle. If this breaks to the upside, we can perhaps see a continuance of bullish price movement. Even if the price breaks to the downside, given the generally positive market sentiment, it might just mean further sideways price action.
$BTC lays down price structure
Source: TradingView
In the daily time frame it can be seen that the price action is not far off the middle of a range, which stretches from $91,300 up to $99,500. The current price action is all contributing to laying down price structure that can be used for future support. The next step up would likely be to $106,200, which may be in the process of becoming a structural support/resistance level.
$BTC poised to surge higher
Source: TradingView
The weekly time frame provides the view that all is well with Bitcoin. So far at least, the price is holding above the support and looks as though it could be poised to climb higher.
The Stochastic RSI at the bottom of the chart is signalling strong upside price momentum. If one looks left to the previous bull flag, it can be seen just how high the price climbed as the Stochastic RSI rose from the bottom to the top of its range. It might also be noted that the main upside price action did not really get going until the Stochastic RSI indicators reached the top.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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