Bitcoin ($BTC) begins formation of a bull flag - surge to continue
After a historic rally out of the Trump election win, the Bitcoin price is currently coiling up underneath the $90,000 resistance level. A bull flag is forming in the short-term time frame. If the flag pattern is successful, with Bitcoin breaking to the upside, a measured move could take the $BTC price to $100,000.
Institutions are driving this bull market
Optimism for this Bitcoin bull market is really starting to permeate across media channels. That said, this time it does not appear to be retail that is driving the market. Institutions are waking up, and all it might take is for the $BTC price to hit the magical price level of $100,000 for a tidal wave of institutional buying to potentially take place.
It could be said that huge buying is already either happening, or is set to evolve, as certain institutions and sovereign countries plan out their future Bitcoin purchasing strategies.
For example, heavy buying from the U.S. Spot Bitcoin ETFs is becoming the norm. 9.04K BTC was purchased on Tuesday, equivalent to $801.7 million. Most of this, as usual, by the Blackrock IBIT ETF fund.
Michael Saylors MicroStrategy bought another $2 billion in BTC just recently, and with Saylor having announced his companys intention to buy $42 billion worth of BTC over the next few years, this leaves $40 billion still to come.
Of course, there is also the simply enormous potential for sovereign buying. Whether the US does make Bitcoin a strategic reserve asset is still to be seen. However, that said, plenty of countries will be eyeing Bitcoin. As soon as one of the major countries is seen starting to buy, the biggest tidal wave of all could begin.
$BTC bull flag materialising on short-term time frame
Source: TradingView
The above chart shows price action on the very short-term 2-hour time frame. It can be seen how $BTC (BTC/USD) stopped just short of the $90,000 price mark and has started to chop up and down just below, forming a small bull flag as it does so.
The bull flag is a continuation pattern, so it would be expected that once the price is finished inside, it will likely break out of the top of the flag, leading to a continuance of the upside move. The measured move for this flag just happens to be around $100,000.
Of course, there is the possibility that the price drops out of the bottom of the flag, and this might spook many. However, the trend is most definitely up, and any price spikes to the downside would likely be bought up.
Next stop $100,000
Source: TradingView
The monthly chart for Bitcoin gives a very comprehensive view of what is happening from a macro perspective. It can be observed how the recent run up to $90,000 was rejected from not only the 1.414 Fibonacci, but also the ascending trendline which goes through both tops of the 2021 bull market.
If $BTC is able to get above $90,000 and hold this level as support, the continuation on to the 1.618 Fibonacci at $101,000 would perhaps almost be a formality.
If this move does materialise, there would very likely be another pause for $BTC, so that this projected surge is able to be absorbed by the market. If the price is not rejected from that $100,000 level, much higher price targets could then be considered. Hold onto your hats.
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.
Read more: https://cryptodaily.co.uk/2024/11/bitcoin-btc-begins-formation-of-a-bull-flag-surge-to-continue
Text source: Crypto Daily™
