The Bitcoin (BTC) weekly candle closed at a price of $69,000, which is above the top of its bull flag, and on par with the all-time high of the previous bull market in November 2021. This excellent close could inspire the bulls to push the $BTC price higher over the course of this week.
Huge institutional buying of $BTC continues
The demand for Bitcoin is continuing to grow as the market is potentially seeing much higher $BTC prices going into the end of the year, especially with the U.S. Federal Reserve looking to make further rate cuts.
This demand appears to be led by institutional buying, which has been absolutely huge over the last six days of trading among the U.S. Spot Bitcoin ETFs. Those six days have seen a total net inflow of 36.58K BTC, which equates to more than $2.5 billion.
Ban or tax Bitcoin?
With all this said, a research paper was recently published from the Minneapolis Fed and the University of Minnesota, which urged U.S. authorities to either ban, or tax Bitcoin.
The paper’s authors claim that the U.S. government needs to continue to run a “permanent primary deficit”, but that this can only be achieved where markets are “incomplete” and consumers are “risk-averse”.
The paper explains that Bitcoin complicates this strategy, and although the authors are contemptuous of Bitcoin, in that they state in the paper that it is a “useless piece of paper”, they also argue that its presence forces the government to balance its budget.
Short term roll over of $BTC price
Source: TradingView
For the short term Bitcoin price, it can be seen that $BTC is starting to roll over after attaining a price of $69,500. If the price does lead into a small correctional phase, the Fibonacci level of 0.236 is just below at a price of $67,000. That said, the price might be expected to sink further and confirm the top trendline of the bull flag. This converges with the 0.382 Fibonacci, and should the price bounce from there this could be considered very bullish.
If the price does go this route, this would also enable the short term time frame Stochastic RSIs to reset to the bottom, which would provide upside momentum once the price swings back up again.
Encouraging macro picture for $BTC
Source: TradingView
The weekly time frame displays a very encouraging picture for Bitcoin. It can be seen that the price is currently sitting on a strong horizontal support at $68,300. If the price does fall below this, the horizontal support at $66,600, and the top of the bull flag, await below.
Towards the bottom of the chart, the Stochastic RSI has the indicators angled nicely upward, while the RSI at the bottom looks to be in the process of reversing the downward trend.
All looks well, and if republican presidential candidate Donald Trump can continue to widen the gap between him and democrat Kamala Harris going into the US elections in two weeks time, the scene could be set for some explosive price action from Bitcoin going into the end of the year.
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.
