Bitcoin has broken one of the most important resistance zones, which raised the possibility of going higher, close to $70,000. Unfortunately, the price faced rejection from the supply zone, raising the possibility of more drops in the coming days. However, from a larger perspective, the BTC price appears to have been stuck within a demand zone and hence, a breakout from the apex may lead to a huge price action.
The latest ETF update suggests the institutions have again begun to accumulate BTC. The ETF flows have been positive, with Blackrock’s iShares Bitcoin Trust seeing over $224 million worth of inflows, being the highest in the past 35 days. Regardless of the growing confidence of the institutions and the retail traders, the BTC price is grinding within a narrow range, indicating the possibility of an extended accumulation.
However, the prevailing accumulation phase is expected to end soon, which may not only raise the levels above the bearish range but also help the rally form new highs.
Regardless of the short-term bearish action, the BTC price continues to trade under a huge bullish influence. The current price action suggests the bulls remain passive as they are accumulating strength to trigger a strong breakout. However, to do so, the price is expected to maintain a descending consolidation, which may drag the levels to the apex of the cup & handle pattern, which may further trigger a massive upswing in the next few weeks.
The RSI remains stuck within a descending trend, which suggests the price may remain in consolidation within a descending parallel channel and drop below $58,000, forming the lows of the cycle. However, a rise from this level may not only trigger a rise from the upper resistance of the channel but also slice through the current ATH and trade within a discovery mode. A bull run may begin, which may elevate the levels close to the much-awaited target of $100K.
