Bitcoin’s six-year range inside a rising channel has drawn the attention of a curious but optimistic analyst. Previewing the price chart shows that the coin has been in range over the years, capturing all of its volatility. Despite occasional dumps and pumps, the structure is yet to be broken.
By the time the screenshot was shared on July 21, Bitcoin was trading in the lower part of the rising channel, skirting the support trend line, an indicator that prices have been generally lower in recent months. The rejection of lower lows and bounce from the support trend line, the analyst says, is bullish and squarely puts back bulls in contention.
Bitcoin To $175,000?
According to the trader’s assessment, a breakout above the upper resistance level at around $32,000 could potentially trigger a new bull run that may see the world’s most valuable cryptocurrency retest highs of the rising channel at $175,000, a level that upbeat HODLers can mark as a feasible target.
Still, considering the volatility in crypto, this bullish forecast cannot be dismissed. To illustrate, the last bull run drove Bitcoin prices from sub-$10,000 to peaks of $69,000 in less than two years. Therefore, if Bitcoin bulls push above $32,000, a price level that the analyst claim is important, it could be a bullish signal that may be the beginning of another leg up in the resumption of the bullish formation set in motion between 2020 and 2021.
Bitcoin is trading below the $30,000 level at spot rates with resistance at $31,800. Despite the general optimism across the board, bulls are yet to breach July 2023 highs as prices consolidate.
Halving And ETF Approval As Tailwinds?
Specific triggers for the next run are unknown for now. Even so, considering past cycles, the upcoming Bitcoin halving event may provide the impetus for a leg up toward 2021 highs at $69,000. Besides, traders are closely monitoring how the spot Bitcoin exchange-traded fund (ETF) applications in the United States progresses.
The US Securities and Exchange Commission (SEC) has rejected several spot Bitcoin ETF applications in the past. However, the involvement of BlackRock has been received positively, lifting prices in the past few weeks. BlackRock is the world’s largest asset manager, managing trillions.
The approval of a Bitcoin ETF would ease institutional investors’ involvement in the sphere, potentially driving demand and lifting prices. Most importantly, a Bitcoin ETF legitimizes Bitcoin as an investment asset. Bitcoin is the most dominant crypto asset, and complex derivatives instruments, including exchange-traded products (ETPs), have been approved and listed in various markets across Canada, Europe, and Brazil.
Feature image from Canva, chart from TradingView