Bitcoin appears poised for another leg up, with analysts eyeing the all-time high of $74,000 as the next major price target. This bullish sentiment is fueled by a combination of technical indicators, positive ETF inflows, and a successful retest of key support levels.
Technicals Pointing Towards $74,000
Popular analyst Trader Tardigrade points to a “tight bull flag” pattern on the daily chart, suggesting a potential breakout towards $74,000. Bull flags are technical indicators that typically signal continuation of an uptrend after a brief period of consolidation.
However, before reaching for the $74,000 milestone, Bitcoin must overcome a crucial hurdle: reclaiming the previous all-time high of $69,000. Yann Allemann, co-founder of Glassnode, emphasizes this point, highlighting the importance of this level as confirmation for a further rally.
Resistance at $65,000: A Test of Strength
The $65,000 price point presents another significant obstacle. This level has acted as a stubborn resistance zone in recent attempts to push higher. Analyst Rekt Capital cautions that Bitcoin might not be ready for a “successful retest” of this level just yet.
Also Read: Bitcoin Back in Favor: BlackRock Leads Record-Breaking $422.5M Inflow Day For US Spot Bitcoin ETFs
ETF Inflows Fueling the Rally
Despite the temporary setback at $65,000, there are positive signs. Bitcoin has managed to stay above a key monthly support level, indicating a successful price recovery. Furthermore, inflows into US spot Bitcoin ETFs have surged, reaching their highest daily total since early June on July 16th. These inflows were a significant driver of Bitcoin’s price surge earlier this year, contributing to roughly 75% of new investment when the price surpassed $50,000 in February.
While Bitcoin faces challenges on its way to $74,000, the confluence of technical indicators, strategic support levels, and renewed interest from institutional investors paints a cautiously optimistic picture. Continued strong ETF inflows could be the key to unlocking the next leg of the bull run and propelling Bitcoin towards its all-time high, or even beyond.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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