Bitcoins' Breaking Freeeeee, Soaring, Flyingggggg
Bitcoin has finally created a new higher high on the daily time frame. Things are looking good.
The hopium for bears continues to dwindle. Overnight, BTC created a new higher high and cleared the 200-day SMA, signaling the potential beginning of a trend reversal. Bitcoin has broken above these key levels and now sits at the top of the bull flag channel.
There are two possible scenarios for Bitcoin: either BTC breaks out and fulfills the bull flag pattern, launching to new all-time highs, or it gets rejected by the top of the channel and heads back down toward $60k. This scenario would be similar to what occurred in June, when BTC made a higher high, but it turned out to be a fakeout. Current momentum and sentiment suggest that the breakout is the more likely outcome.
Stormrake Spotlight: ETHEREUM ($2,635)
Ethereum has underperformed compared to BTC since its initial breakout. However, with BTC's trend reversal in play, ETH is likely to benefit from this shift.
BTC/USD Key Levels and Price Action:
Bitcoin has clearly broken above a key resistance level and flipped it into support. Currently trading at $65.1k, BTC is using the 21- and 55-EMAs as support, with the next target at $66.8k. Additionally, the BTC ETFs have seen substantial inflows, the highest in the past two weeks.
BTC Total ETF Flows for 26 Sep: $ + 272.3 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
Ethereum has shown weakness, not only against the US dollar but also compared to the rest of the crypto market. Although ETH broke out above its key resistance before BTC, it has been disappointing, moving sideways since. While ETH remains above $2,556, it has yet to make significant progress toward its next target of $2,865.
ETH Total ETF Flows for 26 Sep: $ - 15.4 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
Written by Alexandar Artis
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