- The cryptocurrency market is currently moving in calmer waters, with expectations for Bitcoin to make a definite move above the $31,000 level.
- Bitcoin, which began its movement on June 15, created a bull flag pattern as it moved sideways after reaching a high point on June 23.
- Even if a rejection occurs for Bitcoin now, contrary to the widely anticipated breakthrough, it will likely be only a temporary setback.
The crypto market is experiencing quiet days, and investors are curious whether Bitcoin will initiate a new rally.
Bitcoin Price Gaining Strength
The cryptocurrency market is currently moving in calmer waters, with expectations for Bitcoin to make a definite move above the $31,000 level. Considering the resistance, Bitcoin will need the assistance of all the bulls to succeed. Its most important weapon to surpass this resistance will be momentum, with short-term Stochastic RSI moving sideways and resetting to the bottom level.
The daily timeframe RSI can provide significant benefits and is currently crossing below the midpoint. When the bottom is reached and the signal lines move upward, it can be a significant indication that Bitcoin is gaining strength to move forward. Bitcoin, which started its movement on June 15, created a bull flag pattern as it moved sideways after reaching a high point on June 23. The real resistance level following $31,000 in the measured move of this flag is $36,000.
Another bullish chart formation has been completed. This is a potential cup and handle formation that started forming in early June 2022. The cup was completed on April 14 this year, and now the handle part is also completed. The measured target of this move would be a significant move to $46,000.
The growth in the Bitcoin market could not be prevented despite all efforts
When BlackRock’s spot Bitcoin ETF and others are approved, considering the potential for major institutional purchases, the second of these technical targets will not be a point that Bitcoin cannot reach.
Despite all the congestion in the sector due to upcoming regulations for cryptocurrencies and the perception of traditional financial institutions seeing them as a real threat to fiat currencies, the sentiment in the crypto sector is certainly much better than the depths of the crypto winter seen in November last year.
Regulations are expected to have a greater impact on bringing much larger capital to the field, and although this is likely to bring along many issues such as unfairness to average investors and biases towards institutions, it is hoped that the market and evolving technology will create a fairer competitive environment.
Even if a rejection occurs for Bitcoin now, contrary to the widely anticipated breakthrough, it will likely be only a temporary setback. Simply taking a look at the situation of banks and fiat currencies is enough to solidify this scenario.
