Amid the ongoing consolidation following a three-week high, Bitcoin has continued to garner positive sentiment among analysts.
In a recent analysis, Pal’s chart highlights a classic cup and handle formation, showing that a successful breakout above his specified resistance could propel Bitcoin into newer highs.
Per the chart, this pattern began with a significant rise from 2019 to late 2021, forming the “cup” with a rounded bottom during the decline and recovery up to 2023.
Following this, a smaller consolidation, or the “handle,” has formed from early 2024 to the present. The resistance level, marked at approximately $68,007.6, corresponds to the previous peak reached in late 2021. This has led Pal to speculate that a successful breakout above this resistance could propel Bitcoin into what he refers to as the “Banana Zone,” indicating a significant upward movement.
Stronger Support Than Resistance
Further analysis by IntoTheBlock supports this positive outlook, confirming that the outlook is a shared sentiment. Data indicates that addresses holding Bitcoin between $56,840.73 and $66,918.35 are currently “In the Money,” suggesting strong support levels. Notably, these holders are likely to continue holding rather than selling at current levels as they anticipate further gains toward the ATH, which is less than 10% away.
Conversely, addresses that bought Bitcoin between $66,990.85 and $72,500 are “Out of the Money,” representing potential resistance as these holders might sell once they break even. Notably, the large green bubbles around the current price point suggest robust support, with the red bubbles indicating weaker resistance.
Robust Inflows Boost Bitcoin’s Growth Potential
Further bolstering Bitcoin’s potential for growth are significant inflows and positive market sentiment. CoinShares reports inflows of $519 million for Bitcoin-based investment products in the past week, raising its month-to-date inflows to $3.6 billion.
This surge is linked to comments positioning BTC as a potential reserve asset. It has also been linked to expectations for a Fed rate cut in September. On the flip side, Ethereum experienced outflows of $284.9 million last week.
Additionally, previous Santiment analysis shows an increase in weighted sentiment, recently reaching the highest level of bullish commentary since March 2023. This spike in positive sentiment reflects growing confidence among traders, who now foresee further gains and new peak levels.
Trading at $66,967, Bitcoin is only 9% away from its peak value.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
