Will the rising inflows into U.S. Bitcoin spot ETFs drive an inverted head-and-shoulder breakout rally to $107K?
Despite increased price fluctuations near the $100,000 mark, Bitcoin maintains an overall optimistic trend. Currently, Bitcoin is trading at $100,053, just shy of the $2 trillion market cap.
Technical setups indicate underlying bullish sentiment, suggesting a potential breakout rally.
Bitcoin Price Analysis
On the 4-hour chart, Bitcoin’s price trend shows a bullish breakout from a triangle pattern. However, the rally failed to surpass the critical local resistance at $101,642.
The supply zone now serves as the neckline of a bullish setup. Bitcoin’s price action is forming an inverted head-and-shoulder pattern and is currently in the process of forming the right shoulder.
The minor pullback during the formation of the right shoulder is seen as a retest of the previously broken resistance trendline. With the bullish setup and the post-retest reversal potential, the sentiment remains optimistic.
This minor pullback has led to a convergence of the MACD and signal line, warning of a potential bearish crossover. However, key dynamic support levels, such as the 20 EMA on the 4-hour chart, are observing a surge in supply.
BlackRock Purchases $431.6M Worth of Bitcoin, ETF Inflows Hit $597.57M
Despite the minor pullback, institutional support continues to grow. On December 12, the total net inflow of U.S. Bitcoin ETFs reached $597.57 million. The main character in the buying spree remains BlackRock, with an inflow of $431.60 million.
Following BlackRock, Grayscale’s mini Bitcoin ETF accumulated $110.76 million worth of Bitcoin, while GBTC sold off $48.40 million.
Bullish Setup Targets $107k
The 4-hour candle shows a 0.32% recovery, hinting at a potential reversal. If the inverted head-and-shoulder pattern breaks out bullishly, Bitcoin’s price could reach a new all-time high, surpassing the $103,102 level or the 38.20% Fibonacci retracement.
Based on the technical setup, the bull run could target $107,777. However, resistance around the 50% Fibonacci level at $106,912 may act as an intermediary target.
On the flip side, if there’s an extended pullback, the 23.60% Fibonacci level at $98,369 will be a key support level.
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