Bitcoin (BTC) is up more than 2% on Monday having broken out to more than $64,500. With the news that more stimulus is on the way in China, and pro-crypto presidential hopeful Donald Trump is ahead in the polls, investors are perhaps looking to Bitcoin with more optimism going forward.
China and Trump boost Bitcoin
Although concrete figures haven’t been provided by Chinese authorities, a stimulus package was announced on Saturday, which is likely to boost the Chinese stock market, as well as filter into the cryptocurrency sector.
In the US, after what might be termed ‘lacklustre’ interviews by Democratic nominee Kamala Harris, polls are swinging back towards Donald Trump. Polymarket, the world’s largest prediction market, has Trump leading with 54.2%, compared with Harris on 45.3%.
Although democrats do now appear to be slightly more disposed towards crypto, Donald Trump has totally embraced it, and should he win the presidential race, this could provide a huge boost to the industry.
$BTC price heading to top of bull flag
Source: TradingView
The short term chart for $BTC shows the breakout of the descending trend line. It can also be noted that the breakout is also from a W pattern. The descending trend line is the neckline for this. If the pattern does complete, the measured move is to the top of the bull flag trend line.
Huge bulls vs bears struggle this week
Source: TradingView
The macro chart for Bitcoin shows the price is approaching the top of the bull flag once again. Could Bitcoin bulls be lucky this time? The Fibonacci levels for the entire seven months of sideways price action demonstrate that $BTC is now firmly up against the 0.618 level. Surpassing this, and holding above, is the next step towards that bull flag breakout.
That said, at the bottom of the chart are two indicators, one bearish and one bullish. The Stochastic RSI ended last week with a bearish cross of the indicators. This signals that price momentum is no longer to the upside. Bulls will need to get behind the price in order to potentially reverse this cross down by the end of this week.
In contrast, the Relative Strength Index (RSI) has turned back to the upside after making a higher high. Also, with this indicator maintaining above the 50.00 line, this signals that the bull market is still on track.
The coming week will be a very important one for the bulls to try and maintain the upward price momentum. Given that the Stochastic RSI on the weekly time frame has crossed down, this will not be easy. A vigorous tug of war between bulls and bears has commenced.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
