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There’s a Perfect Storm Brewing For Bitcoin on a Weekly Time Frame

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There’s a Perfect Storm Brewing For Bitcoin on a Weekly Time Frame

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Bitcoin has been on a remarkable rally over the past few weeks. The asset has mounted past resistance level after resistance level, recently crossing $9,000.

Market cynics have said that BTC’s recent inability to surmount the key $9,500 resistance is indicative of a top. Though analysts are starting to agree that there’s a growing converge of positive signs for Bitcoin.

The strong recovery in the price of BTC since March’s $3,700 lows has allowed it to print a number of bullish signs. One top trader identified some of these signs on a weekly time frame, and they are as follows:

Also on a weekly time scale, Coindesk market analyst Zack Voell noted that Bitcoin on Sunday night closed its seventh consecutive week of gains, something not seen since April 2019, when the last bear market ended.

This would suggest that should history repeat itself, the cryptocurrency is on the verge of yet another bull run. With Bitcoin being a market based on reflexivity (meaning momentum), this makes sense.

Alongside these positive technical trends are fundamental events that could catalyze Bitcoin growth.

The Federal Reserve just committed to even more money printing in the weeks ahead.

In a statement last Wednesday, Jerome Powell, Chairman of the Federal Reserve, warned that the U.S. economy is currently in its worst rut in history due to the outbreak of COVID-19:

“We are going to see economic data for the second quarter that is worse than any data we have seen for the economy. There are direct consequences of the disease and measures we are taking to protect ourselves from it.”

Powell said that to respond to this, the Federal Reserve will continue to commit to low interest rates, capital facilities for companies, and other liquidity injections.

Also, Bitcoin’s block reward halving is taking place in under seven days, which analysts say will cause the price of the cryptocurrency to rise should demand remain consistent or grow.





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