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F&T: Bitcoin nears all-time highs

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Bitcoin (BTCUSD) 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. 

 

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

 

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

 

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

 

Technical conditions

Daily time frame = Bullish

Weekly time frame = Bullish

Monthly time frame = Bullish

 

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. 

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