Bitcoin’s six-year range within a rising channel has caught the attention of a curious but optimistic analyst. A preview of the price chart shows that the coin has been in range over the years, capturing all of its volatility. Despite occasional dumps and pumps, the structure has not yet been breached.
By the time it was the screenshot common on July 21, Bitcoin was trading at the bottom of the ascending channel, crossing the support trendline, an indication that prices have been generally lower in recent months. The rejection of the lower levels and the return from the support trendline, the analyst says, is bullish and puts the bulls back in contention.
Bitcoin at $175,000?
According to the trader’s assessment, a breakout above the upper resistance level at around $32,000 could trigger a fresh bullish surge that could see the world’s top cryptocurrency retest the rising channel at $175,000, a level that bullish HODLers can mark as a potential target.
However, considering the volatility in crypto, this bullish prediction cannot be dismissed. To illustrate, the recent bull run took Bitcoin prices from sub-$10,000 to highs of $69,000 in less than two years. Therefore, if the Bitcoin bulls push above $32,000, a price level that the analyst claims is important, it could be a bullish signal that could be the beginning of another step in the resumption of the bullish formation set in motion between 2020 and 2021.
Bitcoin is trading below the $30,000 level with spot rates with resistance at $31,800. Despite general optimism across the board, bulls have yet to breach the July 2023 highs as prices consolidate.
Halving and adopting ETFs like Tailwinds?
The specific triggers for the upcoming run are not known at this time. However, considering past cycles, the upcoming Bitcoin halving event could provide the impetus for a move towards the 2021 highs at $69,000. Additionally, traders are closely monitoring how Bitcoin exchange-traded fund (ETF) applications in the United States are progressing.
The US Securities and Exchange Commission (SEC) has rejected several Bitcoin ETF applications in the past. However, BlackRock’s involvement has been positively received, boosting prices in recent weeks. BlackRock is the world’s largest asset manager, managing trillions.
The adoption of a Bitcoin ETF would facilitate the involvement of institutional investors in the sphere, potentially driving demand and driving up prices. More importantly, a Bitcoin ETF legitimizes Bitcoin as an investment asset. Bitcoin is the most dominant crypto asset and complex derivative instruments, including exchange-traded products (ETPs), have been approved and listed on various markets in Canada, Europe and Brazil.
Render image from Canva, chart from TradingView