Bitcoin Breaks from Bull Flag: Is A Retest of $74,000 Inevitable?
Bitcoin is within a bullish breakout formation. As long as the coin is above $63,000, the uptrend remains for now
Bitcoin, after a lull in the last two weeks, broke higher on Friday. At spot rates, the coin is trading above the all-important resistance at $63,000. As bulls press on, confirming gains of August 8, there is a likelihood of prices building on these gains, aiming for $66,000 and $70,000. Technically, the path of least resistance is northwards, and there is a possibility of BTC registering all-time highs in the next few trading weeks.
At press time, Bitcoin is stable in the past day but up 8% in the previous week. Although trading volume is low, at just $21 billion, rising prices will draw more users. As such, engagement will likely jump in the sessions ahead. For now, the reaction at $66,000 on the upper end will shape the short to medium-term trajectory.
Traders are closely monitoring the following Bitcoin news events:
- The primary driver of demand in recent days includes the interest from institutional investors. Since its launch, spot Bitcoin ETFs have seen over $18 billion in net inflows, which is a massive positive for optimistic traders.
- Last week, the United States Federal Reserve hinted at slashing interest rates. As the central bank eases due to dropping inflation, more capital will flow to assets like BTC, which are thought to be hedges of inflation.
Bitcoin Price Analysis
BTC/USD is steady at spot rates.
After the expansion on August 23, the uptrend is set.
Since the breakout was with rising trading volume and the bar wide-ranging, every dip might offer entries.
This preview holds provided prices trend above the all-important $63,000 primary support.
The short-term target for optimistic traders expecting trend continuation from the bull flag is $66,000. Even so, more gains above $70,000 could see Bitcoin fly to all-time highs.
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