Will the rising inflows into U.S. Bitcoin spot ETFs drive an inverted head-and-shoulder breakout rally to $107K?
Despite increased price fluctuations near the $100,000 mark, Bitcoin maintains an overall optimistic trend. Currently, Bitcoin is trading at $100,053, just shy of the $2 trillion market cap.
Technical setups indicate underlying bullish sentiment, suggesting a potential breakout rally.
Bitcoin Price Analysis
On the 4-hour chart, Bitcoin’s price trend shows a bullish breakout from a triangle pattern. However, the rally failed to surpass the critical local resistance at $101,642.
The supply zone now serves as the neckline of a bullish setup. Bitcoin’s price action is forming an inverted head-and-shoulder pattern and is currently in the process of forming the right shoulder.
The minor pullback during the formation of the right shoulder is seen as a retest of the previously broken resistance trendline. With the bullish setup and the post-retest reversal potential, the sentiment remains optimistic.
This minor pullback has led to a convergence of the MACD and signal line, warning of a potential bearish crossover. However, key dynamic support levels, such as the 20 EMA on the 4-hour chart, are observing a surge in supply.
BlackRock Purchases $431.6M Worth of Bitcoin, ETF Inflows Hit $597.57M
Despite the minor pullback, institutional support continues to grow. On December 12, the total net inflow of U.S. Bitcoin ETFs reached $597.57 million. The main character in the buying spree remains BlackRock, with an inflow of $431.60 million.
Following BlackRock, Grayscale’s mini Bitcoin ETF accumulated $110.76 million worth of Bitcoin, while GBTC sold off $48.40 million.
Bullish Setup Targets $107k
The 4-hour candle shows a 0.32% recovery, hinting at a potential reversal. If the inverted head-and-shoulder pattern breaks out bullishly, Bitcoin’s price could reach a new all-time high, surpassing the $103,102 level or the 38.20% Fibonacci retracement.
Based on the technical setup, the bull run could target $107,777. However, resistance around the 50% Fibonacci level at $106,912 may act as an intermediary target.
On the flip side, if there’s an extended pullback, the 23.60% Fibonacci level at $98,369 will be a key support level.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
