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Main points to remember about Bitcoin
- Bitcoin is flirting with $ 60,000 for an escape move.
- Cryptocurrency evolves in a classically bullish “ ascending triangle ” pattern.
- Coinbase’s listing on the Nasdaq, US inflation data update this week promises a further rise.
Bitcoin has come under significant selling pressure in recent trading sessions as it attempts to close above $ 60,000.
The flagship cryptocurrency is trading $ 1,500 lower than its previous all-time high, nearly $ 61,778 (Coinbase data). Despite positive fundamentals, led by Goldman Sachs and Morgan Stanley’s decision to offer bitcoin-based investment services to their high net worth clients, BTC / USD bulls remain cautious of the rising US dollar.
As a result, repeated attempts to exceed $ 60,000 failed in follow-ups. The new week also begins with Bitcoin trading above said psychological resistance level, relying on a convergence of technical and fundamental catalysts to continue a prolonged uptrend.
This ascending channel
The first bullish signal for Bitcoin comes from an ascending triangle forming on its daily charts.
In retrospect, ascending triangles are bullish continuation patterns that appear when an asset moves within a range specified by a horizontal resistance line and an uptrend line. The price retests the upper range several times, only to suffer a breakout later. The massive bullish move pushes the price up as much as the maximum height of the triangle.
Bitcoin anticipates a wild bullish move as the new weekly session approaches. Source: BTCUSD on TradingView.com
Bitcoin ticks all the boxes when it comes to qualifying for an ascending triangle breakout. The cryptocurrency is now considering a breakout that pushes its price north to $ 20,000 – the maximum distance between the upper and lower trendline of the Triangle. This moves the price target to $ 80,000.
Coinbase list, inflation data
Bitcoin’s potential to record a bullish breakout is also increasing due to Coinbase’s listing on the Nasdaq stock market on Wednesday. The landmark entry to Wall Street by one of the world’s leading cryptocurrency companies has raised speculation among the bulls that bitcoin prices will continue to rise.
“Traditional investors who buy Coinbase shares will indirectly speculate in the crypto market, and similarly, crypto traders who own Coinbase shares will have a vested interest in the success of the company,” said James Anderson, CEO of RioDeFi, an ecosystem of interoperable financial services. some products.
If not a follow-up buy, Coinbase news expects to make a holder of an average trader. The Blockchain analysis platform Glassnode noted the same in its recent analysis, noting an increase in unspent bitcoin units in wallets that held the cryptocurrency for the long term.
Long-term Bitcoin holder net position change. Source: Glassnode
The only snag in the Bitcoin rally expected this week could come from higher-than-expected inflation data.
The volatility of Treasury bill yields could accelerate if the March Consumer Price Index (CPI) is higher than usual on Wednesday. In turn, this would increase the attractiveness of holding the US dollar among foreign investors. This should at least limit the demand for Bitcoin in global markets, if not completely harm it.
In the long run, crypto bulls treat higher inflation as a way to stay invested in Bitcoin. Many companies, including Tesla, have already decided to invest in cryptocurrency to protect their balance sheets against the fiat-induced devaluation.
Photo by Kurt Cotoaga on Unsplash
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