BTC nears all-time highs

Bitcoin exploded past $71,000 and, in the process, broke above the upper bound of the descending channel. This price action was accompanied by a rise in RSI, Stochastic, and MACD on the daily chart, all of which are bullish signs. However, with a recent slowdown in Bitcoin ETF inflows, it is in question how much upside potential is left before Bitcoin starts giving up some of the gains. Therefore, much attention will be paid to Bitcoin’s ability to stay above the channel’s upper bound. If Bitcoin closes above the channel for multiple consecutive days, it will bolster a bullish case in the short term. Conversely, a failure will be slightly concerning. Besides technicals, the performance of the U.S. stock market, particularly the tech sector, also remains a significant factor due to its high correlation with the cryptocurrency market. If the stock market begins forming a double top, Bitcoin will be negatively affected.

Illustration 1.01

The daily chart of Bitcoin (BTCUSD) shows a bullish breakout above the upper bound of the descending channel.

Illustration 1.02

The chart illustrates the daily MACD and its successful breakout into the bullish zone.

Illustration 1.03

The illustration above displays simple support and resistance levels derived from peaks and troughs.

Bitcoin addresses
Since our last update, the number of Bitcoin addresses with balances exceeding 1,000 BTC has continued to tick higher. The same applies to the addresses with holdings exceeding 100 BTC. These are positive signs, but the rate of increase is negligible.

Technical conditions
Daily time frame = Bullish
Weekly time frame = Bullish
Monthly time frame = Bullish

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

Illustration 1.04

The bullish breakout was rejected.

Comment:

Bitcoin continues to move sideways below the channel's upper bound; another retest of the resistance is likely.