As every day passes, the potential Bitcoin breakout is awaited ever more keenly. $BTC hanging out above $108,000 since the beginning of the week is perhaps giving the impression that a breakout may not be far away. Are we in a final period of accumulation before the rocket boosters fire up, or could a significant rollover be about to take place?
US Market Closure Boosts Bulls on Tuesday Reopening
The US stock market was closed for the observance of Memorial Day on Monday, and this would have helped the market to digest the fallout over President Trump imposing, and then postponing 50% tariffs on Europe. Therefore, when markets opened on Tuesday, the S&P 500 and the Nasdaq climbed steadily throughout the day.
S&P 500 recommences strong rally
Source: TradingView
The S&P 500 is a sight to behold. The precipitous fall caused by the first few weeks of the Trump tariffs took the Index down 21% from the more than $6,100 high. However, an equally sharp rally since that bottom has taken the Index to within touching distance of $6,000, with a potential new all-time high just above that.
Nasdaq bouncing back to all-time high
Source: TradingView
The Tech-heavy Nasdaq Composite dropped even further to more than 26%, but as can be seen in the 2-week chart above, the index was held up by the ascending trendline. Currently at $19,199, the $20,195 all-time high is also not far away. The 2-week Stochastic RSIs for both indices show that there is plenty of gas in the tank for upside price momentum.
Global money supply winning against mainstream doomsayers
Mainstream media is full of how the US and global economies are failing, and how the Trump tariffs will eventually result in another stock market crash, scaring off investors. Nevertheless, global money supply continues to tick up, and should keep doing so into Q4 of 2025 as major economies are obliged to service their debts.
$BTC heads towards next breakout point
Source: TradingView
The short-term chart for $BTC shows that the price is bouncing off of an ascending trendline and is heading towards a potential breakout of the above downtrend line. It will be important for the bulls to succeed in this breakout, given that a break down through the ascending trendline would likely take the price back at least to the major support at $106,600.
$BTC 2-week chart bullish or bearish?
Source: TradingView
The 2-week chart for $BTC may even be taken as bearish at first glance. The current 2-week candle, just like the one before it, is failing to get above the resistance of the previous January all-time high at $109,300. That said, the MACD indicator at the bottom of the chart is signalling that the indicator lines are crossing up, and the first green histogram bar is being formed. It could be that the price dips back down to confirm the $104,000 horizontal support, but as long as this holds, the bullish upward trend is still in play. Of course, the price could also shoot skywards in these next 11 days if this last resistance can be surmounted. A catalyst for either direction could also play a role.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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