Following Bitcoin’s 6.6% dip, after the US government moved $2 billion in $BTC, the price has since stabilised, hovering around the $66,000 level. Momentum indicators are resetting, and the next upward price surge could be about to begin.
Nothing has really changed in the bullish case for Bitcoin’s next upward journey towards $100,000 and beyond. The US Spot Bitcoin ETFs did record a small 247 BTC outflow on Tuesday, but this is nothing compared to the $billions of inflow that have entered the ETFs over the last three weeks or so.
Nasdaq in channel correction
One of the other main reasons for the fall in the Bitcoin price just recently, besides the US government $2 billion BTC movement, is the ongoing correction in the traditional stock market.
Source: TradingView
The QQQ is the ETF for the Nasdaq technology stock market. As can be seen in the chart above, the QQQ has been following an upward channel since the very beginning of this year. Three decent corrections have taken place so far, with the biggest at around 11%. This current correction (at 9% so far) looks to be heading to the bottom of the channel, which should also find support at $448. A bounce from there might be expected. If a bounce isn’t forthcoming, a further dip to $408 could take place.
S&P 500 already at the bottom?
Source: TradingView
For the S&P 500 it is a similar story, with the exception that this index may well have already bottomed. The bottom of the channel has been reached, and the price has wicked through to touch the 0.382 fibonacci. Further support can be seen below at the 0.618 fibonacci, although this would be problematic, given that the price would have exited out the bottom of the channel, probably leading to a deeper correction, possibly to the 0.786 fibonacci level.
$BTC short term time frame bounce expected
Source: TradingView
Back to Bitcoin; in the short term 4-hour time frame, it should be noted that the $BTC price has settled just above the 0.618 fibonacci for this move. With the short term stochastic RSI’s mostly reset, it might be expected that a bounce takes place from here.
The top of the bull flag is just overhead, also corresponding with the previous 0.382 fibonacci level. It will be critical for $BTC to get above this level and hold this time. The pivot-low at $63,430 will also be a crucial level to hold above.
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.
