Bitcoin Has Moved Into A New Phase
IN TODAY’S REPORT
What we cover: TECHNICAL VIEW Edition. Bitcoin’s conquered resistance levels. BTCUSD Daily channel. Key BTC metrics.
TODAY’S TECHNICAL VIEW
New All-Time High Within Sight
Bitcoin has moved into a new phase.
While we’ve not issued a stats-based report in a couple weeks as we upgrade our code, a huge number of our prior stats-driven studies have now seen their upside targets hit as Bitcoin surges above $40k.
Today we’ll look at Bitcoin, an asset which has now cleared two significant areas of resistance. After initially clearing its 2023 trading range (see yellow highlighted range), Bitcoin fought against the upper boundary of its major resistance zone (see red highlighted range) for three weeks before vaulting above the $40k handle.
BITCOIN INDEX (BTCUSD). Daily Chart with Conquered Resistance Levels.
While our research has leaned bullish to highly bullish since we started the REKTelligence Report earlier this year, the latest price action now puts crypto firmly into a new phase.
With its current open drawdown a mere 36% off its all time high, Bitcoin now trades reasonably near its best levels ever. If 36% sounds like a lot, consider that Bitcoin has moved approximately 75% off its 2022 low in about one year’s time. Then consider that this upside emerged against the backdrop of an irrational SEC effort to diminish the asset class, a barrage of negative news coverage post-FTX collapse, and amid an uncertain macro environment coming into 2023.
On a shorter-term basis, Bitcoin now trades above the upper boundary of its multi-month channel shown below. While the latest action remains highly bullish, a pullback down into the channel looks probable within days.
BITCOIN INDEX (BTCUSD). Daily Chart with Multi-Month Channel.
Whatever weakness and technical selling may befall Bitcoin in the short-term, the long-term picture remains bullish — and perhaps more importantly — increasingly bullish.
For example, despite the gains that Bitcoin has already logged in 2023 year-to-date, the number of wallet addresses currently holding the king crypto continues to climb to new highs.
DAILY CHART. All Addresses Currently Holding Bitcoin. IntoTheBlock Data.
Further, HODLers have only increased their holdings even as Bitcoin has rallied. This metric always declines in bull markets eventually, but as the chart shows below, we see no signs of this yet. Just the opposite, in fact.
DAILY CHART. The Balance of Bitcoin Assets Held By HODLers. IntoTheBlock Data.
Bitcoin has moved into a new phase.
We’ll continue to cover Bitcoin, Ether, and increasingly altcoins as we move deeper into what could just be the ultimate bull market cycle for crypto.
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