Bitcoin Price Surge Expected This Week
Introduction to Bitcoin’s Recent Performance
The price of Bitcoin has been holding steady over the weekend, reaching a crucial resistance level of $118,000 due to the convergence of numerous bullish catalysts. This trend may continue into the week, with observers expecting a new all-time high. At its current price of around $118,500, Bitcoin has risen sharply from last week’s low of $112,000.
Technical Analysis of Bitcoin’s Price Movement
A closer look at the daily chart reveals that Bitcoin’s price has formed a bullish flag pattern, which often precedes a strong breakout. This pattern began forming on June 22, when the price bottomed at $98,320 and peaked at the all-time high of $123,200, resulting in a height of nearly $25,000. The flag section, characterized by a falling channel, is now showing signs of breaking out above the upper side of the flag.
The price target in a bullish flag pattern is estimated by adding the flag’s height to the breakout point, which in this case is at $117,000. By adding the two, the price target is approximately $142,000. Additionally, Bitcoin remains above the 100-day Exponential Moving Average and has formed a break-and-retest pattern by falling to the support at $112,000, which was its previous all-time high.
Federal Reserve and ETF Inflows
Bitcoin’s potential catalysts for a surge to a record high this week include the hopes of a Federal Reserve cut and increasing ETF inflows. Data shows that American investors have continued to accumulate Bitcoin, with ETF inflows jumping by over $246 million last week, a significant reversal from the previous week’s net outflows of $643 million. The soaring demand for Bitcoin, including from treasury companies, has occurred as supply on exchanges has plunged to the lowest level in years, which is a bullish sign.
The odds of the Federal Reserve starting to cut interest rates in the September meeting have also increased, following the release of weak nonfarm payrolls data earlier this month. If the U.S. publishes weaker-than-expected consumer price index data on Tuesday, the probability of a rate cut will likely rise. Economists expect the data to show that the headline CPI rose to 2.8% in July, as the impact of tariffs begins to show.
