Bitcoin (BTC) back above $69,000 – but will it last?
Bitcoin sneaked back above $69,000 on Monday’s early trading, but can $BTC break out, or is this just another wiggle inside the trading range bitcoin has been in for the last 12 weeks?
Liquidity
With all the sideways and slightly downwards chop and change in the $BTC price, it is probably difficult for most new retail investors to gather the fortitude to hold on to their position. That said, there are relatively few retail investors in the crypto market currently. Most are probably going to flood in at much higher prices, perhaps providing the liquidity for the professional traders to exit their positions.
Generally, things are still good for $BTC, even though the potential for higher for longer interest rates could be the Fed policy through the rest of this year. That said, liquidity is still entering the system through the back door, and China’s central government may be about to add more.
14 straight days of institutional inflows
On the institutional front, the US Spot Bitcoin ETFs are continuing to experience inflows. 14 straight days of net inflows will likely begin to have its effect over time. Admittedly, the last four ETF trading days have attracted relatively small amounts, although on all these days except one, the BTC net inflow accounted for a lot more than the total mined issuance of 450 BTC per day.
$BTC price meets resistance at $69,000
Source: TradingView
In the very short hourly time frame it can be noted that $BTC shot up to register a price just above $69,000. However, this met the top of the small triangle and also the major resistance at this level. A rejection back to the bottom of the triangle could be more likely, and would reset the short term stochastic RSI momentum indicators.
A catalyst to break $71,300
Source TradingView
Zooming out to the daily time frame, it can be noted that the $BTC price is still meandering along within the confines of the trading range, and also the bull flag. A break of the mini bull pennant could be the catalyst that allows the price to pierce the top of the bull flag and the resistance at $71,300. Other than that, the support levels at $67,000, $64,000, and $61,000 are what can hold the price up should we see a dip instead.
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.