Bitcoin price prediction BTC showing signs of bullish trend formation
The price of Bitcoin faced strong downward pressure this week due to concerns about demand and ETF inflows. BTC is heading towards its second consecutive week in the red, falling below the crucial support level of $65,000. It is now down over 12% from its all-time high, indicating that the bears may be in control.
Most spot Bitcoin ETFs have experienced outflows after failing to break through the resistance level at $72,000 last week. Data reveals that all ETFs saw net outflows of $145.9 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the way. These outflows intensified following a hawkish interest rates decision by the Federal Reserve, which hinted at a potential rate cut later this year.
Furthermore, Bitcoin’s price has been impacted by reports showing that major mining companies like Marathon Digital and Riot Platforms have been consistently selling their coins for 33 days straight.
On the technical side, Bitcoin formed a golden cross pattern in March 2023 when the 200-week and 50-week Exponential Moving Averages (EMA) crossed bullishly. It has since remained above these averages. Additionally, Bitcoin is showing signs of a cup and handle pattern, a bullish continuation indicator. The recent consolidation phase could be part of the pattern’s formation.
As a result, there is a possibility of Bitcoin experiencing a bullish breakout in the short term, especially if it surpasses the year-to-date high of $73,500. However, there is a risk to this bullish outlook as Bitcoin has formed a small double-top pattern at $72,473, which could lead to a potential drop and retest of the neckline at $56,578, around 12.65% below the current level.
