Bitcoin is headed for a huge weekly close as bulls look to break a seven-month downtrend.
BTC/USD 1-hour chart. Source: TradingView
BTC price has finally signaled a major breakout.
Data from Cointelegraph Markets Pro and TradingView shows BTC price action to break resistance after hitting record highs in March.
Bitcoin (BTC) has been consolidating within a downtrend channel for over half a year since hitting an all-time high of $73,800.
Despite several attempts to re-establish price discovery, BTC/USD has remained range-bound ever since. Now traders hope things will be different.
Rekt Capital, a trader and analyst who analyzed the weekly charts, noted repeated stabs at the upper edge of the channel, the most recent occurring this week.
He said, “Bitcoin experienced resistance at the top of the downward trend channel (red), as it did in the past (blue circle).”
“A Bitcoin weekly close inside red resistance is essential to avoid a deeper rejection here.”
BTC/USD 1 week chart. Source: Rekt Capital/X
A weekly close above the top of the channel, currently around $68,000, is already in sight. That’s because buyers continue to apply pressure and the bears have little room to move.
“It’s still early in the week,” Rekt Capital concluded.
“Generally, you should watch this downtrend channel resistance (red) for signs of weakening compared to previous rejections.”
This is the BTC/USDT 1-day chart. Source: Daan Crypto Trades/X
During the lower period, there is more reason for optimism as daily closes are already occurring outside the channel.
Fellow trader and analyst Daan Crypto Trades told
The attached chart shows BTC/USD clearing the 200-day simple (SMA) and exponential moving average (EMA) clouds. This “has been a bit of a challenge since the summer.”
“The break period trend is also upward,” Daan Crypto Trades added.
Bitcoin Institutional Demand Record
Cointelegraph previously reported that overall demand for Bitcoin remains heavily influenced by relatively modest price fluctuations.
relevant: Bitcoin traders expect the BTC price to hit $70,000 as the market reduces its bets on the Federal Reserve cutting interest rates.
More recently, this trend has continued as the rise in BTC prices has set off a chain reaction between investor capital inflows.
“Globally, Bitcoin investment vehicles have recorded annual net inflows of 360,000 BTC and are on track to surpass the 2020 record of 373,000 BTC, led by Grayscale,” said Vetle Lunde, senior analyst at cryptocurrency analytics firm K33 Research. Confirmed on October 18th.
Bitcoin ETF net flow. Source: Vetle Lunde/X
Total net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) exceeded an all-time high of $20 billion, while total assets hit a new all-time high of $65 billion.
“For context, it took gold ETFs about five years to get to that same number,” Eric Balchunas, senior ETF analyst at Bloomberg, said of the $20 billion tally.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.