Bitcoin Eyes $150K: Key Bullish Pattern Emerges
Bitcoin's price has seen a slight correction of around 2.4% in the last 24 hours, stabilizing just above $115,000. Traders are keenly watching a specific bullish pattern that could determine whether Bitcoin will make a significant move towards $150,000 or risk a reversal.
Fund Flow Ratio Indicates Reduced Selling Pressure
The Fund Flow Ratio, which compares the movement of coins to and from exchanges relative to total on-chain transfers, suggests a decrease in immediate selling pressure. A declining ratio indicates fewer coins are being sent to exchanges, signaling less intent to sell.
- Earlier in July, the ratio peaked at 0.15, coinciding with Bitcoin's peak near $120,000.
- By July 28, it decreased to 0.11, forming a lower high.
- Currently, the ratio has dropped to 0.07, suggesting reduced selling interest among major players.
This downtrend could potentially create a supply squeeze, fostering conditions for a breakout if buying pressure increases.
Chaikin Money Flow (CMF) Shows Accumulation
The Chaikin Money Flow (CMF) tracks buying and selling pressure through price and volume analysis. A bullish divergence is forming on the 3-day chart:
- Bitcoin's price has been making lower highs since mid-July.
- Simultaneously, the CMF has been establishing higher highs.
This divergence suggests that capital is flowing into Bitcoin despite recent price dips. The CMF is currently around 0.11. If it continues to rise, it could confirm a bullish breakout.
At Codeum, we believe robust analysis is critical for smart contract security. Identifying these patterns allows our security experts to better assess risk within DeFi protocols.
Bullish Pennant Pattern: Key to $150,000?
The 3-day chart reveals a classic pole and pennant structure:
- The pole: A sharp 25% rally earlier in the month.
- The pennant: A converging consolidation phase following the surge.
This pattern typically indicates a continuation of the uptrend upon breaking resistance. Bitcoin has tested multiple breakouts, experiencing pullbacks due to volatility.
The pennant structure remains valid as long as support at $114,000 holds. A confirmed 3-day candle closing above $119,000 (the highest failed breakout point) could trigger the next leg higher. A 25% breakout from this level could propel Bitcoin to around $150,000.
Bitcoin’s next major move hinges on this technical setup:
- Above $119,700: Opens the possibility of a surge towards $150,000.
- Below $114,000: Invalidates the bullish setup, increasing downside risk.
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