Bitcoin’s six-year range within a bullish channel has caught the attention of a curious but optimistic analyst. A preview of the price chart shows that the coin has been in a range over the years, capturing all of its fluctuations. Despite the occasional dumps and pumps, the structure is not yet broken.
By the time the screenshot subscriber On July 21, bitcoin traded at the bottom of an ascending channel, crossing the support trend line, which is an indication that the price has been generally depressed in recent months. The analyst says that the rejection of the lower lows and the rebound from the support trend line is bullish and directly puts the bulls back into competition.
Bitcoin to $175,000?
According to the trader’s assessment, a break above the upper resistance level around $32,000 could trigger a fresh bullish impulse that could see the world’s most valuable cryptocurrency retest the bullish channel at $175,000, a level that bullish HODLers could identify as a possible target.
However, given the volatility in cryptocurrencies, this bullish outlook cannot be ruled out. To be clear, the latest bull run has pushed bitcoin prices from under $10,000 to $69,000 in less than two years. Therefore, if the bulls push Bitcoin above $32,000, a price level that analysts claim is important, it could be a bullish signal that could be the start of another bullish move in the resumption of the bullish formation that started between 2020 and 2021.
Bitcoin is trading below the $30,000 level on the spot rates with resistance at $31,800. Despite the general optimism across the board, the bulls did not breach the July 2023 highs as prices consolidated.
ETF approval cut in half as a tailwind?
The specific triggers for the next run are unknown at this time. However, given the previous cycles, the upcoming Bitcoin halving event may provide the impetus for a rally towards the 2021 high of $69,000. Besides, traders are keeping a close eye on how exchange-traded fund (ETF) applications are progressing in the US.
The US Securities and Exchange Commission (SEC) has rejected many spot Bitcoin ETF applications in the past. However, BlackRock’s involvement has been received positively, which has driven prices up in the past few weeks. BlackRock is the largest asset management company in the world, managing trillions of dollars.
Approval of the Bitcoin ETF would dampen the participation of institutional investors in the space, which could lead to increased demand and higher prices. Most importantly, the Bitcoin ETF legitimizes Bitcoin as an investment asset. Bitcoin is the most popular cryptocurrency asset, and complex derivative instruments, including exchange-traded products (ETPs), have been approved and listed on various exchanges across Canada, Europe, and Brazil.
Featured image from Canva, chart from TradingView