After hitting a yearly high of $53,000, Bitcoin has been accumulating below this level or slowly falling into better buy-in territory as it prepares for the next stage of the rally.
Bitcoin continues to be purchased by spot Bitcoin funds, which is helping push the price up significantly. But could these purchases loosen up as those looking to test the Bitcoin ETF waters have mostly done so and the remaining institutions are now waiting for lower prices before entering?
Bull flag or rollover?
Source: CoinGecko/TradingView
What is clear is that Bitcoin is slowly rolling over, forming lower highs and lower lows. Of course, this is also an action to build strength, and Bitcoin appears to be currently in a strength situation. The test will be whether the price holds $50,000 and returns to the uptrend, or whether a collapse occurs and triggers a more substantial price decline.
Great buying opportunities await below
Source: CoinGecko/TradingView
If we zoom in on the weekly time frame, we can see that there are many support levels below the current price. Prices are $47,000, $44,000, and $42,000. This means that if Bitcoin returns to these levels, it is likely that institutional as well as retail buying will be very strong.
Potential for major adoption in the future
Buying these dips is an excellent opportunity for those looking to hold a Bitcoin position over the next 18 months. No matter how much FUD is thrown about Bitcoin by the likes of the SEC or the ECB or any of the other three correspondents or agencies, it looks like Bitcoin is here to stay and could return to its all-time high of $69,000. It’s just a matter of time.
Will Bitcoin then enter a bear market? Sure. If you look at the history of Bitcoin, there is a 4-year cycle. If we don’t test it in advance, when a bear market hits, the price could come back high enough to retest the $30,000 level.
In other words, if investors are looking at a 10-year investment, it’s all just ebbs and flows. One thing is that Bitcoin will continue to attract significant attention as an asset outside of failed monetary systems. For this reason, large-scale adoption is likely to occur in the future.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.