Introduction
Bitcoin is up 43% YTD and 131% for the past year. The surge has come after a horrific bear market that saw ‘digital gold’ crash by 80%. The rally we have seen has now stalled, and the chart is no longer printing aggressive higher highs like we saw earlier in the year. However, it does not mean it’s over for the bull market by any means. Let’s look at the technical aspects and see if there are long trades we could take.
Technical Analysis
The most prominent feature on the chart is what appears to be the formation of a massive bull flag. Price is basically stuck between the $54,500 and $66,000 range with the top side resistance coming lower and lower. There is also the possibility that there is a descending triangle formation occurring, but we are still a long way away from that to even consider it now; however, look at the chart and keep an eye on it.
For Long term traders looking for an entry into BTC, the $55,000 support is very attractive. If we see price fall to that level we would likely see a lot of buys coming in. That would lead to about a 12% drop from current levels.
Trades
Possible trades could be to short BTC at current levels with a stop loss above $67,000, as a move above there would likely lead to new all-time highs.
Traders who do not want to short BTC can wait to see if price find a floor at the 55K support mentioned earlier. Any reversal pattern around there would likely be a good place to enter the market. Bulls need to see the price maintain that level, however, as there are probably a lot of stop losses for long trades just below, and it could lead to a panic sell event where BTC could drop to the 45K-48K level.
Why We Look At Bitcoin?
Bitcoin undeniably plays a significant role in shaping investment decisions today. Its rise from a niche digital currency to a mainstream financial asset has altered how investors approach risk, diversification, and macroeconomic themes like inflation. The speculative frenzy it often ignites can lead to crazy market behavior, while its growing institutional acceptance suggests a stable future for Bitcoin as part of the financial system.
