Bitcoin could be on the verge of breaking out of its bullish flag pattern.
Assessing the possibility of resistance build-up at critical level.
Bitcoin [BTC] delivered an impressive bullish charge in the last two weeks. Just the other day, the cryptocurrency struggled to sum up enough momentum for a sustained uptrend, or push well above the $60,000 price range.
Fast forward to the present and Bitcoin has obliterated the $60,000 resistance level, and pushed even higher. The price of 1 BTC at the time of writing, was $63,404, which is equivalent to an 18.35% rally in the last 14 days.
With only 10 days remaining in September, Bitcoin is on track to close the month in the green if it can sustain current levels. However, will likely experience some resistance ahead, if it pushes into the next major resistance zone at $65,000.
Why $65,000 level is critical for Bitcoin
BTC’s price swings between March and the present have formed a bullish flag pattern. If it follows the pattern, then that means a bullish breakout will eventually take place. Now seems like an ideal time for that breakout.
Source: CryptoQuant
A strong push above $65,000 would likely break the lower highs trend we observed over the last few months. Breaking this that pattern means price will likely commence another charge into price discovery territory.
The recently announced rate cut might turn out to be the next catalyst for the liquidity necessary to fuel another strong bullish sentiment.
Can the Bitcoin bulls maintain the current momentum?
Looksonchain recently noted that five miner wallets that have been active since 2009 recently moved their BTC. This raises the possibility of setting off some sell pressure. The findings indicate that roughly 250 BTC worth over $15 million was transferred.
Bitcoin miner reserves continued to decline in the last 24 hours, reaching a 5-week low of 1.81 million BTC.
Source: CryptoQuant
A surge in Bitcoin miner reserves would indicate confidence in its ability to keep maintaining its upside. However, the current observation indicates the opposite. This also coincides with the risk for appetite on the biggest exchange.
Net longs dipped sharply in the last 24 hours, indicating lower confidence in Bitcoin’s potential upside in the near-term.
HyblockCapital
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Net shorts remained relatively higher, than net longs, despite also showing signs of some decline. This could also indicate that there is some uncertainty regarding the potential pullback.
Bitcoin holders may see the recent upside as a sign of momentum build up for the next major long term rally. This may influence them to switch from swing trading to a long-term HODL strategy.
