Bitcoin Crypto Analysis
Welcome back to the Crypt Mining website, everyone! My name is Haider, and right now, a new signal is flashing on the Bitcoin chart that we need to pay attention to, while another signal is now playing out in the short term. So, I'll be talking about that in just a moment alongside Ethereum, which is now potentially forming a new pattern that we need to pay attention to, while Solana is running into the final critical area of support before potentially much lower prices. So, I'll be talking about all of that and more later in this blog, so definitely read to the end.
Bitcoin ETF News
First of all, taking a look at the Bitcoin ETF news today, just on Tuesday, we saw another net outflow. However, this time it wasn't as bad as Monday. We only saw a net outflow of around $18.5 million. So once again, Tuesday was not as bad as what we saw on Monday. We saw a much larger net outflow on Monday. If we're looking at the breakdown, we can see BlackRock had a somewhat decent inflow into their ETF on Tuesday, but all of the other ETFs had very small, if not no inflows. As usual, we saw another outflow coming out of Grayscale. This time it was around $155 million, leaving Grayscale just on Tuesday. So, once again, when you add all of this together, we're left with a net outflow for Tuesday of around $18.6 million USD. In case you're new to all of this, net outflows are considered bearish, but net inflows are considered bullish. But because this is only around an $18 million outflow, honestly, this amount will not really have that much of an impact on the price of Bitcoin. When we're talking about hundreds of millions of dollars or billions of dollars coming in or out of the ETFs, then that can influence the price much more.
Bitcoin Halving COMING SOON
That can influence the price of Bitcoin. Taking a look at this Bitcoin halving countdown, we only have around 9 days to go until the Bitcoin halving, which by the way, is a once-in-a-4-year event. It only happens once every four years. So if you're new to crypto, this is honestly one of the best times to be in crypto. And once again, it only comes around once every 4 years. So, this is definitely something to pay attention to. And as we get a little bit closer to the Bitcoin halving, I'll start talking more about the Bitcoin halving and exactly what it means for Bitcoin moving forward over the coming months and over the next one year or so. So make sure you subscribe to this channel with notifications turned on so that you don't miss out on any of these important update videos that I'll continue sharing each and every day.
Important Bitcoin Crypto Analysis
Getting into the Bitcoin Crypto Analysis charts right now, on the weekly time frame, we're still potentially repeating history because as of right now, we're still trading right around that old all-time high level at around $69,000 to $70,000. So, as of right now, on the larger time frames, we're still looking very bullish. It's just in the somewhat short term here, obviously, we're struggling around that all-time high breakout level, which is very normal to see. We've actually seen this in past bull cycles before, eventually seeing a major breakout to the upside at some point later on.
Now, if we're taking a look at the daily Bitcoin crypto analysis chart right now, the price is still forming this potential ascending triangle pattern, with this area of resistance sitting in between around $715,000 to $735,000, and this ascending line of support sitting at around $665,000. Statistically speaking, an ascending triangle pattern breaks out to the upside more often than it breaks to the downside. Now, that does not mean it's impossible to see a break to the downside; a break to the downside can happen. It's just that it's simply the less likely scenario statistically speaking. But ultimately, we don't actually confirm the pattern and the breakout and the next price target until we finally confirm a break either above this resistance or below this support. And so, just for example, if we see a confirmed breakout above this resistance, ideally breaking out above around $73,000 to $74,000, above the all-time high, then in that case, that will set up a bullish price target for this pattern right here, which would be sitting at around $889,000. And so, from the point of the breakout to that price target, we're talking about a potential 21% move here in the price of Bitcoin. But remember, that price target only comes into play; it only activates once we first see a confirmed breakout above this resistance, which as of right now, has not yet happened. But considering the fact that we have seen some bullish price structure recently with higher lows and higher highs more recently here in the price of Bitcoin and considering the fact that statistically, an ascending triangle pattern does actually break out to the upside more often than not, personally, when it comes to my trading strategy, taking all of that into consideration, I'm already starting to scale into a small long position at the moment. And basically, I'm starting off very small. I'm not going very heavy into that long position at all as of right now. So basically, if the price pulls back further in the short term, I'm able to continue just averaging into that position, getting the entry price lower and lower. And then eventually, when we see some sort of major bounce or eventually if we break out above this resistance, that is when I massively profit from that trade. But once again, considering it's only a relatively small trade at the moment, even if the price continues further to the downside, I can just slowly continue scaling into that long position to build it up to a bigger position at lower prices because despite what happens here in the short term, once again on the larger time frames, I'm still very bullish. I still think that we're very much within a bullish market on the larger time frames. It's just at the moment, in the somewhat short term, we're just simply struggling around that all-time high breakout level, which once again is normal to see. And if you want to trade these moves in the price of Bitcoin or any other crypto, personally, I'm taking that trade right there over on Buybit.
Now, if we're taking a look at this daily Bitcoin chart, looking at the DXY, also known as the US dollar index over the last one day, we've actually seen a large spike to the upside in the DXY. And this was mainly caused by new inflation numbers that just got released, new CPI numbers that came out, which basically came in just above the expected numbers. And so basically, with inflation coming in slightly higher than expectations, that means the Federal Reserve may have to keep rates a little bit higher than what the market was previously expecting. And basically, if you can get a higher interest rate with US dollars, that increases the value of US dollars relative to other currencies, which increases the DXY, also known as the US dollar index. So once again, with those inflation numbers coming in slightly above expectations, that spiked the DXY to the upside. Historically speaking, usually when the DXY is bullish, that is often bearish, or at least neutral for the price of Bitcoin. And we most commonly see the largest bullish moves in the price of Bitcoin when the DXY is bearish. So just keep that in mind. And with that being said, zooming into the shorter term, looking at the 4-Hour timeframe right now, we're bouncing from this exact area of support that I've been talking about recently on the channel. First of all, this area of support is sitting in between around $68,000 to $69,000. And once again, right now, we're currently bouncing from that area. But if we were to see a break below around $68,000 to $69,000 with confirmation, so closes back below that level or flipping that previous support into new resistance, then in that case, the next area of support is sitting in between around $65,000 to $66,000. And as for resistance to the upside, if this short-term bounce continues, then the next important resistance is sitting at around $715,000. And above that, we have more resistance in between around $73,000 to $74,000 right around the all-time high. And also right now, in the imminent short term, zooming into just the 1-Hour timeframe, we're seeing a new bullish divergence play out as we speak. Because over the last one day, we've confirmed a new lower low in the price of Bitcoin in the candle closes while also confirming a higher low in the 1-hour Bitcoin RSI. And so once again, this is known as a bullish divergence, which is either bullish for the price or at the very least neutral for the price. Basically, it tells us that we should not really be expecting a lot of bearish momentum, at least in the short term. And so potentially over the next 1 day or so, this could continue to play out. But considering this is only on the 1-Hour timeframe, I would not really expect this pattern to continue to play out over weeks and weeks from now because usually something only on the 1-hour timeframe, just in the short term, usually plays out over around 1 to 2 days on average.
Now, if we're taking a look at the Bitcoin liquidation heatmap, we can see over the last one day, we actually took out a decent amount of liquidity to the downside, which was sitting at around $68,000, give or take. But with that being said, we still have a lot of liquidity sitting at around $67,000 and more liquidity at around $65.9k. And as for upside liquidity, we do have some liquidity at around $73,000 and a lot more liquidity if you zoom out to larger time frames at around that all-time high level at around $74,000. I hope that you loved my todays blog which was on "Bitcoin Crypto Analysis". If you want more articles on "Bitcoin Crypto Analysis", tell me in the comment section below!
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