The Bitcoin price has surged 2.3% in the last 24 hours to trade at $70,821 on a 5.6% surge in trading volume to $30 billion.
This surge comes as popular analyst James Coutts points out that Bitcoin’s price has tightly converged across three different time frames(all within a 5% range), signaling a potential breakout.
Advertisement
According to Coutts, on June 4, the Simple Moving Average (SMA) showed convergence across the 5-day, 30-day, and 50-day periods, falling between $65,000 and $68,239. This low volatility over an extended period raises hopes for a potential breakout, though it could also lead to a price retrace.
The FDIC has reported that 63 US banks are on the brink of insolvent collapse — this is due to banks sitting on $517 billion in unrealized losses.
Meanwhile, after some nice coiling pricing action since March, my boring #Bitcoin Trend model triggers.
DXY down, Yields and Corp… https://t.co/evKbRbzbrV pic.twitter.com/0QPK25FzYs
— Jamie Coutts CMT (@Jamie1Coutts) June 4, 2024
Bitcoin is trading at $70,840, above the three SMAs, based on CoinMarketCap data. Trading above the moving average is a positive sign for traders, indicating that the moving average could act as a new support level if Bitcoin’s price declines.
Bitcoin Price On The Brink Of A Break Out Above The Bullish Pennant
Over the past 30 days, Bitcoin has consistently stayed above its key support level of $60,000, a critical threshold for traders. However, it didn’t quite hit $72,000, peaking at $71,946 on May 21.
Although Bitcoin has seen some gains this week, it’s still trading within the bullish pennant formation. This indicates that bulls might be gearing up for a rally above the pennant. The formation suggests a possible upward trend, hinting that the bullish momentum could persist and potentially drive prices beyond Bitcoin’s previous all-time high of $73,737.
BTCUSDT Source: Tradingview
The price has recently bounced off the 50-day simple moving average (SMA), and the 200-day SMA is still providing solid support for Bitcoin, which helps maintain the bullish momentum. If Bitcoin starts to rise, it could confirm expectations of breaking above the 50-day SMA and surpassing the upper trendline of the pennant.
Although the Relative Strength Index (RSI) has been on a short-term bearish trend, it has bounced back from the 30 oversold territory, crossing the 50 midline level to 63, indicating strong buying pressure. Increased buying pressure should push it back into the overbought zone.
Additionally, the green histogram bars on the Moving Average Convergence Divergence (MACD) indicator and the recent crossover of the blue average line over the orange signal line add further support to Bitcoin’s bullish sentiment.
Related: Bitcoin Price Prediction 2024 – 2040
Bitcoin Price Prediction: Bitcoin Bulls Prepare for a Rally Beyond the Pennant
The Bitcoin price is poised for a significant bull rally, despite a recent dip to the 50 SMA. Traders are leveraging the bullish pennant to fuel upward momentum towards a potential new all-time high of $84,527.
However, if the bears persist in driving the price down, it could fall below the 50 SMA within the pennant to around $65,827. Continued downward pressure might result in a retracement towards the lower trendline, reaching approximately $61,514.
Meanwhile, Spot Bitcoin ETFs may be a big boost for BTC price surge as they experienced their second-largest combined net inflow day ever, totaling $887 million.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the way with an inflow of $378.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) with $275 million, based on early data from Farside Investors and X account HODL15Capital.
These are the highest net inflows the funds have seen since March 12, when they recorded a record-breaking $1.04 billion. Bitcoin surged to an all-time high of $73,679 the following day on March 13.
Learn More
- Thailand Launches Cryptocurrency ETF for Institutional Investors
- Paraguay’s Major Crackdown on Illegal Bitcoin Mining Operations
- Latest Crypto Price Predictions
- Bitcoin Miner Marathon Digital Collaborates with Kenya on Renewable Energy Projects
- Chinese whales driving Bitcoin price surge with record $17 billion trading volume
Advertisement
