Cryptocurrency Market Stays Unruffled by Geopolitical Tensions: Next Aim for Price Milestone Revealed
Bitcoin experienced a resurgence on Monday, exceeding $110,000, following an unexpected announcement by U.S. President Donald Trump concerning EU tariffs. This economic jolt has sent ripples through the financial markets, but one asset in particular seems to be making headway—Bitcoin.
The digital currency has exhibited a significant technical pattern that could hint at its next major move. Known as a double bottom, this pattern has emerged following two consecutive price lows at approximately $106,800 and $106,600, with a neckline at around $109,000. The price has breached this neckline and currently trades above $109,400, lending credence to this bullish reversal signal.
CryptoQuant's recent report suggests that, if the breakout level remains supported, Bitcoin could potentially reach $112,000—the pattern's projected target. The strength of this breakout—occurring with substantial trading volume—indicates a growing bullish momentum.
Meanwhile, the undercurrent of the Bitcoin market reveals a subtle tug-of-war between retail investors and significant players, known as whales. While the prices have been rising, exchange netflows remain in the red, implying more Bitcoin is leaving exchanges than entering. However, the lack of large inflow spikes suggests there's no widespread panic or major distribution, potentially indicating a stealth accumulation phase by smart money.
If prices hold firm amidst rising sell pressure, a short squeeze and continuation of the bull run could ensue. It's worth noting that while patterns such as the double bottom can offer insights, they do not guarantee future price movements. As always, it's crucial to assess risk and make informed decisions.
[1] The double bottom pattern is considered a strong bullish reversal signal.[2] The double bottom form when the market finds support twice at a specific level.[3] A breakout occurs when the price breaches the resistance level set by the neckline.[4] Bullish momentum refers to the strength of buyers in the market.[5] Analysts' predictions are based on the likelihood that the $109,000 level will hold as support, and the pattern's projected target of $112,000.
- The breach of the neckline in the double bottom pattern lends credence to a potential bullish reversal for Bitcoin, with analysts predicting it could reach $112,000 if the breakout level remains supported.
- Given the double bottom pattern's emergence, the current regular trading volume suggests a growing bullish momentum in the Bitcoin market.
- The underlying Bitcoin market dynamics hint at a subtle tug-of-war between retail investors and significant players, known as whales, with the lack of large inflow spikes potentially indicating a stealth accumulation phase by smart money.
