Trend accelerates, Bitcoin aims for an all-time high
The crypto market has been watching a specific technical pattern that appears very reliable. Since 2021, this pattern has a success rate of about 78%. Many believe it could signal Bitcoin’s next move higher. Are we about to see Bitcoin break its previous highs?
Picture a trader wearing a shirt, with a sweaty face and wide eyes, holding a phone showing a rising Bitcoin chart. In the background, black and orange colors with lively lines add to the sense of excitement and tension.
In brief
A bullish engulfing pattern has shown up on Bitcoin's daily chart. Since 2021, it has a chance of around 78% of being successful.
Since November 2022, Bitcoin has attracted over 544 billion dollars of investment, pushing its market value to 944 billion dollars.
Right now, liquidity levels look similar to those in December 2022. That was just before a big rally started.
Bitcoin staying above 105,000 dollars for two days straight could mean a shift in the market trend.
A Proven Technical Pattern for Bitcoin
Since early 2021, data shows how strong this pattern can be. Out of 19 bullish engulfing signals that met all technical checks, 15 led to new temporary highs. That gives it a 78% success rate, making it one of the most dependable signals in crypto.
The rules for spotting this pattern are strict. The engulfing candle must cover at least the two previous candles. It should appear after a correction, indicating a possible change in trend. A confirmed breakout in the following days then shows strong bullish momentum.
Recent geopolitical events also played a role. The ceasefire between Israel and Iran helped form this pattern. When tensions eased, Bitcoin quickly rose back from below 100,000 dollars to near 108,000 dollars.
This pattern fits well with today's strong bull market. Unlike the failed attempts in 2022, current conditions make further gains more likely according to history.
The overall structure of the Bitcoin market now looks similar to late 2022. Data from Swissblock shows liquidity has returned to the levels seen then. Back then, prices doubled in just three months.
The key factor in this cycle is the huge amount of money coming into Bitcoin. Since its low of 16,800 dollars in November 2022, Bitcoin has received more than 544 billion dollars in new investment. This has pushed its market cap to a record high of 944 billion dollars.
This growth shows Bitcoin is becoming more of an important asset in the broader economy. Large institutions are adding to their holdings, often through spot ETFs.
For example, on June 24, US Bitcoin ETFs saw nearly 589 million dollars flow in. This reflects sustained interest from big investors.
The overall economic environment also favors Bitcoin. Jerome Powell recently said the Fed might cut interest rates sooner than planned if inflation stays calm. This easing could push more money into assets like Bitcoin.
Plus, the recent expiration of 20 billion dollars worth of Bitcoin options adds a new layer. With 11.2 billion dollars in call options and 8.8 billion in put options, traders who hold calls could gain about 2.1 billion dollars if Bitcoin stays above 106,000 dollars.
This technical setup is backed by solid fundamentals. Big companies like Strategy and Metaplanet are increasing their Bitcoin holdings.