The Trend is your Friend. Bitcoin’s current action is the kind of bull‐market digestion you want to see before the next big surge. We’ve powered up from roughly $50 K on the Trump‐election narrative to flirt with all‐time‐high territory around $112 K, and now we’re simply consolidating in a tight $100 K–$110 K range. What really grabs my attention is how volume has dried up inside that band: fewer sellers stepping up means less fuel for a deep pullback, and an ebb in liquidity often precedes the kind of compressed buildup that launches a sharp move. That liquidity squeeze tells me smart money is biding its time rather than panicking out, and that sets the stage for a clean breakout once a new catalyst arrives.
Technically, the setup could hardly be neater. The 10-, 21- and 50-period moving averages have converged, running almost in lockstep. When those averages come together like train tracks, it signals a market in “healthy pause” — neither exhausted by an overextended rally nor capitulating under bearish pressure. It’s the kind of feature you love to see: price has had its run, it’s caught its breath, and it’s ready to go again on fresh conviction. Meanwhile, the RSI sits squarely in the middle of its range, neither overbought nor oversold, meaning there’s plenty of room for buyers to step in without an immediate pullback risk from extreme readings. In other words, momentum indicators are calm, not frothy or fearful, which further supports the case for a measured upward thrust rather than a sudden crash.
On the macro side, fundamentals are lining up, too. Monthly passive inflows into Bitcoin ETPs and ETFs continue at a robust clip, with institutions quietly adding to their positions out of the spotlight. If the Fed pivots toward rate cuts later this year, capital that’s been chasing yield elsewhere could flow back into risk assets — and Bitcoin, with its “digital gold” narrative, stands to gain especially when you consider its roughly $2 trillion market cap versus gold’s $20 trillion. That leaves a lot of upside potential if institutional demand keeps accelerating. Even more compelling: real‐world use cases for blockchain—everything from proof‐of‐ownership to decentralized finance—continue to mature behind the scenes, reinforcing Bitcoin’s narrative as not just a speculative asset, but a foundational piece of tomorrow’s financial system.
Of course, we can’t ignore the risks. We’ve already seen Bitcoin price near $112 K once, and there’s always the chance it carves a frustrating double-top if it stalls again. External narratives—Middle‐East tensions, renewed Ukraine tensions, fresh tariff skirmishes—could throw cold water on the rally and trigger a quick sell-off. But given the current setup—low‐volume consolidation, converging moving averages, balanced RSI and steady capital flows—a 10 % push toward $120 K feels not just possible but probable. Keep your eye on $112 K as your breakout trigger, size your positions sensibly, and plan your stop-loss around the lower end of the range. If Bitcoin can clear that level on strong volume, we’re likely to see this bull market extend rather than roll over into a double-top scenario. Happy trading, stay disciplined, and let’s see where this market takes us next!
Technically, the setup could hardly be neater. The 10-, 21- and 50-period moving averages have converged, running almost in lockstep. When those averages come together like train tracks, it signals a market in “healthy pause” — neither exhausted by an overextended rally nor capitulating under bearish pressure. It’s the kind of feature you love to see: price has had its run, it’s caught its breath, and it’s ready to go again on fresh conviction. Meanwhile, the RSI sits squarely in the middle of its range, neither overbought nor oversold, meaning there’s plenty of room for buyers to step in without an immediate pullback risk from extreme readings. In other words, momentum indicators are calm, not frothy or fearful, which further supports the case for a measured upward thrust rather than a sudden crash.
On the macro side, fundamentals are lining up, too. Monthly passive inflows into Bitcoin ETPs and ETFs continue at a robust clip, with institutions quietly adding to their positions out of the spotlight. If the Fed pivots toward rate cuts later this year, capital that’s been chasing yield elsewhere could flow back into risk assets — and Bitcoin, with its “digital gold” narrative, stands to gain especially when you consider its roughly $2 trillion market cap versus gold’s $20 trillion. That leaves a lot of upside potential if institutional demand keeps accelerating. Even more compelling: real‐world use cases for blockchain—everything from proof‐of‐ownership to decentralized finance—continue to mature behind the scenes, reinforcing Bitcoin’s narrative as not just a speculative asset, but a foundational piece of tomorrow’s financial system.
Of course, we can’t ignore the risks. We’ve already seen Bitcoin price near $112 K once, and there’s always the chance it carves a frustrating double-top if it stalls again. External narratives—Middle‐East tensions, renewed Ukraine tensions, fresh tariff skirmishes—could throw cold water on the rally and trigger a quick sell-off. But given the current setup—low‐volume consolidation, converging moving averages, balanced RSI and steady capital flows—a 10 % push toward $120 K feels not just possible but probable. Keep your eye on $112 K as your breakout trigger, size your positions sensibly, and plan your stop-loss around the lower end of the range. If Bitcoin can clear that level on strong volume, we’re likely to see this bull market extend rather than roll over into a double-top scenario. Happy trading, stay disciplined, and let’s see where this market takes us next!
Sic Parvis Magna - Greatness From Small Beginnings
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Sic Parvis Magna - Greatness From Small Beginnings
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.