- Bitcoin has a bullish market structure on the daily timeframe.
- The significant capital inflow and strong momentum favored an upward move on the daily chart.
- Bitcoin saw increased demand from ETFs a month after the halving event.
Discover the latest trends and insights in Bitcoin’s bullish market structure and what it means for future price predictions.
Bitcoin Bulls Eye $71.2k Resistance Zone
Bitcoin’s price action on the daily chart has been notably bullish. After dipping below the 61.8% Fibonacci retracement level at $59.4k in early May, Bitcoin quickly recovered, flipping the short-term range high at $67k to support. The Chaikin Money Flow (CMF) indicator showed a reading of +0.12, reflecting significant capital inflow into the market. Additionally, the Relative Strength Index (RSI) on the daily chart was above the neutral 50, signaling bullish momentum. These technical indicators collectively point towards a bullish Bitcoin price prediction, with potential targets at the Fibonacci extension levels of $79.2k and $88.1k in the coming weeks.
ETF Demand Post-Halving and Altcoin Performance
Bitcoin’s increased demand from ETFs a month after the halving event has been a significant driver of its bullish momentum. An analysis by AMBCrypto highlighted that the altcoin performance has recently eclipsed Bitcoin. Drawing parallels between the 2020 post-halving trends and current market behavior, the Rainbow Chart indicated that Bitcoin remains in the buy zone. This suggests that the current market conditions are favorable for Bitcoin’s continued upward trajectory.
Does the Liquidation Cluster to the South Warrant Bitcoin’s Attention?
Data from Hyblock showed that the $66.2k-$66.7k region harbors a cluster of liquidation levels, indicating that Bitcoin might dip to this region. However, the liquidity at $67.8k, which has already been swept, might be sufficient to propel Bitcoin back to the $71.2k resistance zone. Traders should be prepared for both outcomes and manage their risk accordingly. Short-term volatility is possible, and a revisit to the $66.5k level could present a buying opportunity.
Conclusion
In summary, Bitcoin’s bullish market structure, supported by significant capital inflow and strong momentum, suggests a positive outlook for its price. The increased demand from ETFs post-halving and favorable technical indicators further bolster this bullish sentiment. While there are potential risks associated with the liquidation cluster to the south, the overall trend points towards higher price targets in the coming weeks. Traders should remain vigilant and manage their risk effectively to capitalize on these opportunities.
