Bitcoin’s six-year range within a bullish channel has caught the attention of a curious but optimistic analyst. If you preview the price chart, you can see that the coin has been in range over the years and captured all of the volatility. Despite occasional dumps and pumping, the structure has yet to be demolished.
By the time the screenshot was shared on July 21, Bitcoin was trading in the lower part of the ascending channel, along the supporting trendline, an indicator that prices have been generally lower in recent months. The rejection of lower lows and bouncing off the supporting trendline, the analyst says, is bullish and puts bulls right back in the fray.
Bitcoin to $175,000?
According to the trader’s assessment, a break above the upper resistance level of around $32,000 could potentially trigger another bull run, with the world’s most valuable cryptocurrency retesting the highs of the ascending channel at $175,000, a level optimistic HODLers can mark as an attainable target.
Still, given the volatility in crypto, this bullish forecast cannot be dismissed. To illustrate, the latest bull run caused Bitcoin prices to go from below $10,000 to highs of $69,000 in less than two years. Therefore, if Bitcoin bulls rise above $32,000, a price level that analysts say is important, it could be a bullish signal that could mark the start of another step up in the resumption of the bullish formation set in motion between 2020 and 2021.
Bitcoin is trading below the USD 30,000 level at spot prices with resistance at USD 31,800. Despite the general optimism across the board, the bulls have yet to break through the July 2023 highs as prices consolidate.
Halving and ETF approval as a tailwind?
Specific triggers for the next run are not known for now. Still, given past cycles, the upcoming Bitcoin halving event could be the impetus for a run towards the 2021 highs at $69,000. In addition, traders are closely monitoring how the spot Bitcoin exchange-traded fund (ETF) applications are progressing in the United States.
The US Securities and Exchange Commission (SEC) has rejected several spot Bitcoin ETF applications in the past. However, BlackRock’s involvement has been positively received, driving prices up in recent weeks. BlackRock is the world’s largest asset manager and manages trillions of dollars.
The approval of a Bitcoin ETF would facilitate the engagement of institutional investors around the world, potentially boosting demand and raising prices. Most importantly, a Bitcoin ETF legitimizes Bitcoin as an investment asset. Bitcoin is the most dominant crypto asset and complex derivative instruments including exchange traded products (ETPs) are approved and listed on several markets in Canada, Europe and Brazil.
Feature image from Canva, chart from TradingView