Bitcoin Weekly Outlook: Breakout Over $60K Expected on Coinbase Listing
Key Bitcoin Takeaways
- Bitcoin flirts with $60,000 for a breakout move.
- The cryptocurrency is trending inside a classically bullish ‘Ascending Triangle’ pattern.
- Coinbase’s listing on Nasdaq, US inflation data update this week promises further upside.
Bitcoin has endured significant selling pressure over the last few trading sessions as it attempts to close above $60,000.
The flagship cryptocurrency trades $1,500 lower from its previous all-time high level, near $61,778 (data from Coinbase). Despite positive fundamentals, led by Goldman Sachs and Morgan Stanley’s decision to offer bitcoin-enabled investment services to their wealthy clients, BTC/USD bulls remain cautious against a rising US dollar.
As a result, repeated attempts to break above $60,000 have failed on follow-throughs. The new week also begins with Bitcoin trading above the said psychological resistance level, relying on a convergence of technical and fundamental catalysts to pursue an extended uptrend.
That Ascending Channel
The first bullish cue for Bitcoin comes from an Ascending Triangle forming on its daily charts.
In retrospect, Ascending Triangles are bullish continuation patterns that appear when an asset fluctuates inside a range specified by a horizontal resistance line and a rising trendline. The price retests the upper range repeatedly, only to undergo a breakout later. The massive upside move takes the price higher by as much as the maximum Triangle height.
Bitcoin anticipates a wild upside move heading into the new weekly session. Source: BTCUSD on TradingView.com
Bitcoin checks all the boxes when it comes to qualifying for an Ascending Triangle breakout. The cryptocurrency now eyes a breakout that takes its price north by up to $20,000 — the maximum distance between the Triangle’s upper and lower trendline. That shifts the price target to $80,000.
Coinbase Listing, Inflation Data
Bitcoin’s potential to log a bullish breakout also increases because of Coinbase’s listing on Nasdaq Stock Market this Wednesday. The milestone entry on Wall Street by one of the world’s leading cryptocurrency firms has raised speculations among bulls about an extended bitcoin price rally.
“Traditional investors who purchase Coinbase stock will indirectly speculate on the crypto market, and similarly, crypto traders who own Coinbase stocks will have a vested interest in the success of the company,” said James Anderson, CEO of RioDeFi, an ecosystem of interoperable financial products.
If not a follow-through buying, the Coinbase news expects to make a holder out of an average trader. Blockchain analytics platform Glassnode noted the same in its recent analysis, noting an increase in unspent bitcoin units across wallets that held the cryptocurrency long-term.
Bitcoin Long-Term Holder Net Position Change. Source: Glassnode
The only snag in the Bitcoin rally anticipated this week could come from higher-than-expected inflation data.
Treasury yields volatility could pick up if March’s Consumer Price Index (CPI) comes higher than usual this Wednesday. In turn, that would increase the appeal of holding the US dollar among foreign investors. It should at least limit Bitcoin’s demand in global markets, if not hurt it altogether.
Long-term, crypto bulls treat higher inflation as their cue to stay invested in Bitcoin. Many corporates, including Tesla, have previously decided to invest in cryptocurrency to safeguard their balance sheets against fiat-led devaluation.
Photo by Kurt Cotoaga on Unsplash
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Yashu Gola, @Khareem Sudlow