Bitcoin displays bullish signals, including 'cup and handle' and 'bullish flag' patterns, indicating a potential path to new records.
Technical Analysis of Bitcoin
According to technical analysis, Bitcoin is forming a 'bullish flag' pattern, characterized by a vertical line and a descending channel. This pattern is considered a highly positive signal. Additionally, a 'cup and handle' formation has emerged, comprising a rounded bottom and a descending channel. Currently, Bitcoin is trading at $107,400, which is above the 50-day and 100-day exponential moving averages.
Drivers of the Recent Rally
The recent rally in Bitcoin is attributed to inflows into spot Bitcoin ETFs, which totaled $2.2 billion last week, marking the third consecutive week of increases. According to SoSoValue data, these funds have attracted $4.5 billion this month, with total inflows of $48.87 billion year-to-date.
Future of Bitcoin
With current trends and the declining supply of Bitcoin on exchanges, which is at levels not seen since 2017, the market seems set for a possible breakout above $111,900. If this level is successfully surpassed, the next target could reach the psychological barrier of $115,000.
Bitcoin continues to exhibit strong technical signals, and given the current demand for the cryptocurrency, the likelihood of reaching new historical highs appears promising.
