Is Bitcoin Set to Begin a New Bullish Wave?

Bitcoin’s price has been struggling to regain its momentum after a sharp drop from the $75K level. However, there are signs that a new bullish wave might be on the horizon. The daily chart reveals that BTC has been trading within a descending channel pattern, forming lower highs and lows. While this pattern is typically considered bearish, the momentum does not seem overly bearish. The $60K support zone has been holding up well, with the market now edging towards the upper boundary of the channel. A breakout above this pattern could signal the start of a new bullish trend, while a breakdown below it could lead to a rapid decline towards the $52K support level.

Looking at the 4-hour chart, Bitcoin has recently bounced off the $60K support zone and is testing a short-term resistance around $63,500. The Relative Strength Index (RSI) has climbed above the 50% level, indicating a bullish momentum. If the price manages to break above $63,500, we could see a rally towards the midline of the channel, potentially setting the stage for new all-time highs.

While Bitcoin has been undergoing a correction in recent months, it is essential to consider external factors affecting its price. One crucial factor to monitor is the Coinbase premium gap, which measures the price difference between Coinbase’s BTC/USD pair and the BTC/USDT pair on Binance. This gap reflects the demand and supply dynamics between the US market and other countries. Lately, the Coinbase premium gap has been highly volatile, particularly on the downside, indicating a lack of buying interest from US investors. This selling pressure, primarily from wealthy individuals and institutions, has been contributing to the downward trend in Bitcoin’s price. As long as this trend persists, the prospects for a sustained bullish rally remain uncertain.

While Bitcoin’s price action has shown signs of a potential bullish reversal, external factors like the Coinbase premium gap and selling pressure from US investors could cap any significant upside moves. Traders and investors should remain cautious and closely monitor key levels to gauge the market’s direction in the coming days.