Bitcoin is back! It has now extended its gains for three consecutive weeks and is currently trading 28% above its low this month. So far, the cryptocurrency has been able to maintain its position above the critical support level of $68,845. This red line marks the top of an old cup and handle formation.
Bitcoin price action has drawn a massive ascending channel, with the bottom side just being retested in this week’s candle on the weekly chart. Additionally, Bitcoin has proved its strength by staying above its 100-day moving average, showing that the bullish momentum is very much still in the market.
For all this good news, there’s reason to be cautious. If a breakout doesn’t happen and BTC remains unable to cross the $100,000 level, its price might restart the downtrend. With the sudden upswing in Bitcoin and altcoin prices, they’re looking at their best weekly close since January.
And it’s still too early to call a breakout, according to Ki Young Ju, the founder of on-chain analytics CryptoQuant. Ju, for one, thinks Bitcoin still has further to run. Further upward momentum could be spurred on by the growing M2 money supply and rising institutional demand.
Despite Bitcoin’s underperformance against gold, it hasn’t been all doom and gloom as it has still outperformed American equities as well. Optimistic analysts claim that the top cryptocurrency may be able to reclaim its previous all-time high of $109,285. Moving beyond this point might open the floodgates for more upward movement, possibly even propelling Bitcoin up to $125,000.
Spot Bitcoin ETFs, like BlackRock and Ark Invest’s Bitcoin ETFs, have been drawing in huge inflows. At the same time, institutional interest is growing as firms like Cantor Fitzgerald and SoftBank begin investing in Bitcoin.
So far, the second and third quarters have been the worst-performing periods for Bitcoin on average. Bitcoin’s strength and resilience is shining through in its recent performance. A single bearish call announcing the end of the bull cycle was enough to take crypto down 10%. Futures have since rebounded and are 10% above where they were at that point.
