Bitcoin ($BTC) heads higher after consolidating
Following on from Bitcoin’s ($BTC) huge run up since the start of November, and a period of consolidation, the number one cryptocurrency could be ready to begin the next stage of its ascent to $100,000, and possibly beyond.
An enormous price surge
Since leaving its bull flag, the Bitcoin price has exploded higher. 42.6% to be precise, which equates to a U.S. dollar gain of $27,000. This is a simply enormous price surge, and it is therefore no surprise that the price has experienced a pause over the last several days, as the market takes time to absorb this massive move.
That said, this pause could be a temporary one, as the $BTC price is already climbing higher on Monday – just over 2% up on the day so far. Bitcoin is now above the ascending trendline from the 2021 bull market, and is also above the 1.414 Fibonacci level.
Two major buyers
This positive price action may have the effect of convincing the U.S. Spot Bitcoin ETFs to start buying again. Last Thursday and Friday saw just over 7,000 $BTC sold by these ETFs. Having said that, this is small beer compared with the gargantuan net inflows experienced by the ETFs in the week preceding this.
It’s not only the U.S. Spot Bitcoin ETFs that could be buying. Michael Saylor recently posted an image on X with the MicroStrategy Bitcoin purchases (green dots) superimposed upon the Bitcoin price chart. He commented: I think http://saylortracker.com needs even more green dots.
Could the US swap gold into Bitcoin?
As if that were not enough to get the Bitcoin bulls salivating, Senator Cynthia Lummis has proposed swapping part of the U.S. gold reserves into Bitcoin. Lummis is the Senator behind preparing a bill to establish a U.S. Bitcoin Strategic Reserve. If the holder of the world’s reserve currency established such a strategic reserve, and then swapped some of its gold into Bitcoin, the ensuing rush by other sovereign nations into the king of the cryptocurrencies would potentially spark a veritable tsunami of buying.
Short-term price triangle
Source: TradingView
The 4-hour chart for Bitcoin shows how the price is currently within a triangle. Having got above the ascending trendline and the 1.414 Fibonacci, and the fact that the trend is up, it might be expected that the $BTC price exits the triangle to the upside.
Plenty of upside momentum in 2-week chart
Source: TradingView
The two-week chart really puts the Bitcoin price into perspective. The huge impetus from the bull flag breakout has taken the price up to the ascending trendline. A candle body close above, should this be the case in two weeks time, will go a long way towards confirming a continuation of this bullish price action.
At the bottom of the chart, the Stochastic RSI is showing that the price potentially has a long way to run, with the two indicator lines climbing upwards and signalling big momentum behind Bitcoin going forward.
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.
