Bitcoin is currently trading around the $52,000 mark, a crucial price level that could confirm the continuation of the upward trend. The cryptocurrency has formed a rounded bottom pattern on the weekly chart, with buyers potentially targeting the neckline at $69,220, aligning with the all-time high reached in November 2021.
A weekly candle closing above this level would confirm a breakout from the rounded bottom pattern, propelling BTC to new highs. Bitcoin’s Relative Strength Index (RSI) has entered the overbought zone, approaching the 80-point mark, reinforcing the dominance of the bullish camp in the market.
The Exponential Moving Average (EMA) power-law crossover on the weekly chart is also noteworthy. This occurred in early January when the EMA 100 crossed above the EMA 200, signaling a bullish trajectory. Investors believe that the imminent halving event, just less than 70 days away, is a key factor influencing Bitcoin’s trajectory.
Bitcoin tends to follow a specific cycle, with analysts pointing out similarities between historical patterns and the current price trajectory. This suggests a potential bullish cycle similar to what has been witnessed in the past may unfold.
Data indicates that the halving event has a positive impact on Bitcoin, and bullish trends may initiate several months prior to the event, continuing until Bitcoin reaches new all-time highs. Analyst Rekt Capital explains the five stages of the Bitcoin halving, with the Parabolic Advance being the final stage, where BTC’s price increases exponentially, reaching new all-time highs.
Related: Institutional Buying Spurs Bitcoin Surge Beyond $52,000
This sentiment is echoed by investor Lady of Crypto, who predicts that Bitcoin’s parabolic trend will take 7 to 8 months post-halving, projecting a break of the all-time high in November 2024. Cane Island’s Chief Investment Officer, Timothy Peterson, also asserts, “Bitcoin will reach $100,000 in August.”
The next driving force behind the upward momentum is the influx of capital into Bitcoin ETF Spot funds, which continues to surge. Data from Farside Investor reveals that a total of $4.5 billion has flowed into Bitcoin ETFs in just over a month since they started trading on January 11.
