Bitcoin bull flag burst as whales continue to cluster
Bitcoin‘s recent rally above $ 65,000 has all the signs of a classic bullish breakout.
Bitcoin is likely to climb to $ 75,000 later this year as it breaks out of a classic upward pattern and adds upward signals from the recent cluster of wealthy investors.
Bitcoin Bull outbreak
Bitcoin has rebounded nearly 5% in the past 24 hours, hitting a new all-time high (ATH) of $ 67,772, which has helped it break out of a consolidation range between two diverging trendlines, a setup reminiscent of Bitcoin.
Bull flags are bullish continuation patterns that occur when an instrument consolidates within a triangle-like price range after a sharp upward move known as a flagpole. Most of the time he breaks out of the range in the opposite direction and aims for a profit the length of the flagpole.
Bitcoin is showing almost all the signs when it comes to confirming a bull flag breakout. As a result, the possibility of its bullish breakout continuing has increased, with the profit target above $ 12,300 to the level of the flagpole, as shown in the chart below.
Bitcoin daily frame price chart with bull flag setup | Source: TradingView
The bullish setup is pushing BTC price towards $ 75,000 after raising the flagpole height to the breakout point at $ 63,300.
Whales participate in BTC accumulation
Bitcoin’s bullish setup has received additional confirmation from an on-chain indicator from Santiment that tracks the distribution / accumulation activity of wallets with balances between 10,000 BTC and 100,000 BTC. The indicator underlines that “Bitcoin whales” have increased their buying speed.
Specifically, these companies have 43,000 BTC in the last five days (worth around 2.82 billion, rebounded over $ 66,000.
Bitcoin whale accumulation / distribution diagram | Source: Santiment
The accumulation of whales in the $ 60,000 to $ 67,000 price range underscores their readiness for the days ahead, meaning they predict Bitcoin will close above its previous record high.
Additionally, on-chain analyst Willy Woo noted that Bitcoin has continued to move off the exchanges to cold stores in recent weeks. At the same time, stablecoin USD Coin (USDC) deposits rose over the same period, underscoring a tiered buying pattern.
BTC net flow on spot exchanges | Source: Willy Woo
Courting To write in a note:
“The price used to be overheated, a consolidation was to be expected, since then investors have bought significantly while the price has been sideways. It’s a healthy amalgamation. Significant whale activity has since been detected, suggesting the next move in BTC price is about to come. “
Expectations move parabolically
Analysts say BTC price is set for parabolic price movement after breaking the “last” resistance at $ 67,000.
In particular, Rekt has Capital post The chart below underscores his view that “there will be one final level of resistance before BTC enters the parabolic phase of the cycle”.
BTC / USD weekly framework chart | Source: Twitter
As can be seen in the graph above, the last major BTC resistance is at $ 67,000.
David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, explains how long this bullish breakout can last, pointing out that Monday’s price move is a clear indication that “the bulls are in control and will last through the end of the year could “. “.
However, Lifchitz also warns that Mt. Gox could reaffirm its impact on the crypto market in 2022 and potentially stave off any upward momentum.
“Given the Mt.Gox liquidation in January, which happened in a historically weak quarter (Q1), the bears are likely to counterattack at this point …”
“Squeeze” has only just begun
A second upward move on today’s price action was delivered by options trader and Twitter crypto analyst ‘John Wick’, who share The chart below highlights a major breakout of resistance as BTC price approaches a bright sky.
BTC / USD daily frame chart | Source: Twitter
John Wick says:
“The compressed eruption has only just begun and we are close to the ATH. No more resistance after ATH! “
One final view was given by the crypto analyst and Twitter user nicknamed “TechDev” who share The graph below compares price movement during previous Bitcoin bull cycles to the current market.
Bitcoin price development in the bull markets in 2013, 2017 and 2021 | Source: Twitter
The current phase of the market compared to previous cycles is marked by a yellow circle and the words “BTC is here”, indicating the possibility of a blow-off top. The parabola could occur within the next few months if Bitcoin’s current cycle develops similarly. to the last two cycles.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZcoin News