Key Points
- Bitcoin’s bullish market structure is favored by significant capital inflow and strong momentum.
- Bitcoin’s price action suggests a potential upward move, with target levels at $79.2k and $88.1k.
Bitcoin’s market structure appears bullish on the daily timeframe. The cryptocurrency has been benefiting from a significant capital inflow and robust momentum, which are driving an upward trend on the daily chart.
Bitcoin’s Demand and Performance
Just a month after the halving event, Bitcoin [BTC] experienced an increase in demand from ETFs. Interestingly, the performance of altcoins has been overshadowing Bitcoin lately.
An analysis comparing the 2020 post-halving trends with the current ones showed that Bitcoin is still in the buy zone according to the Rainbow Chart. This suggests a bullish Bitcoin price prediction.
Technical Indicators and Predictions
The price action on the 1-day chart for Bitcoin has been bullish. Despite dropping below the 61.8% Fibonacci retracement level at $59.4k in early May, Bitcoin quickly bounced back.
The cryptocurrency has managed to flip the short-term range high at $67k to support. The CMF also showed a reading of +0.12, indicating a significant capital inflow to the market. The RSI on the daily chart was above neutral 50, signaling bullish momentum.
These technical indicators collectively point towards a bullish Bitcoin price prediction. The higher timeframe uptrend is expected to continue, with the Fibonacci extension levels at $79.2k and $88.1k being the targets for buyers in the coming weeks.
Data from Hyblock revealed that the $66.2k-$66.7k region was home to a cluster of liquidation levels. This suggests that Bitcoin might dip to this region in the short term. However, the liquidity at $67.8k, which has already been swept, might be enough to propel Bitcoin back to the $71.2k resistance zone.
Traders should be prepared for both scenarios and manage their risk accordingly. Short-term volatility is a possibility, and a revisit of the $66.5k level could provide a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
