Bitcoin Technical Analysis: Consolidation to Breakout to the Upside?

The beginning of a new epoch for the Cryptocurrency market has arrived, with Bitcoin prices surpassing their former all-time highs. Regardless of the fact that it has been repeatedly condemned by a number of government organizations, investors’ faith has kept prices rising.

The pessimistic enthusiasm in Bitcoin token and altcoins took a setback in May 2021 as a result of China’s crackdown in Bitcoin mining; the flip in prices around the higher timeframe demand levels restored the bullish feeling.

In comparison to ETH crypto, BTC appears to have seized the lead, as bulls have breached the ATH far earlier than Ethereum. In fact, Ethereum is yet to surpass the all-time highs it hit along with altcoins in the second quarter of this year.

Bitcoin Price Roundup

The world’s largest cryptocurrency has been on a skateboard ride with respect to its pricing from year to date. The entire market movement has only been in the range of $31,000 and $60,000, especially since Bitcoin, for the last time at the beginning of the year.

Speaking of the present bids, Bitcoin is trading at highs of approximately $63,000. In fact, the value of $60,000 is being held firm for over a week now.

After a few days of retracement between $59,800 and $63,000, the buyers attempted to break past the all-time high of $64,854. In actuality, the market did reach the historical record, but it ran into a barrier of around $67,000. Favorably, Bitcoin did set a new ATH, but this does not indicate that the market is overly positive since the bulls were unable to carry the demand up and going. However, the market is currently too premature to remark on the buyers’ willingness to continue their surge.

Inflation A Major Cause for BTC to Surge to All-Time Highs, Not BTC ETF – Says JP Morgan Analyst

The first bitcoin ETF was launched on the New York Stock Exchange after years of waiting for the Securities SEC to approve crypto-based exchange-traded funds. Despite the fact that it was a BTC “Futures-based” fund, there was a great deal of interest. Analysts think the ETF had a key part in Bitcoin’s ascension to new all-time highs. It makes perfect sense in the wider context; however, analysts of JP Morgan, a major worldwide financial bank, have a different take on BTC’s positive price behavior.

JPMorgan Chase analysts led by Nikolaos Panigirtzoglou published an analysis memorandum claiming that inflation has driven bitcoin’s price to new highs, not the enthusiasm around the first U.S. bitcoin futures ETF.

Gold used to be a good way to protect against inflation. Unfortunately, it has been unable to respond to growing complaints over rising costs in recent weeks. This has prompted many investors to look into alternate assets, such as crypto-based funds rather than traditional commodities.

Bitcoin Slows Down, But Momentum Looks Good

In terms of price activity, in the second quarter of 2021, prices of BTC crypto dropped dramatically, allowing purchasers to stockpile the asset at roughly around $30,000. The market was predicted to hold at reverse once more since this price had previously served as a strong demand zone. And, predictably, prices held steady at the support level, which, in hindsight, proved to be a bottom.

Speaking of the trend, the Weekly timeframe trend has gotten back into action as the buyers have stepped up from the right levels. Looking at the lower timeframes, such as the Daily or 4-Hour, the downtrend has transited into an uptrend.

The jump from $30,000 to $52,000 can be considered as the bulls’ first push to the north. This push, which came with a lot of force, was an indication of the purchasers’ willingness to continue the momentum going.  However, this movement did not meet one of the trend’s requirements – a higher low.

It was time to expect a higher low when the market met resistance at $52,000. With sellers driving prices lower week in and week out, bidders jumped in force at freshly constructed $40,000 demand, breaking through the $52,000 supply level. As a result, this led to the formation of a higher low that was expected in an uptrend.

Since all obstacles had now been eliminated, it was an opportunity for the bulls to push at least to the ultimate resistance level of $58,400. The buyers steadily increased their bids and eventually reached and mildly surpassed the ATH.

Currently, the prices are hovering between $60,000 and $64,000, with one attempt of the buyers to touch $67,000. It has been almost ten days, and the Bitcoin market is unable to continue with its next push north. However, this does not put BTC in a bearish picture, as the price is above the $58,400 resistance level, and the momentum favors the bulls.

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