Bitcoin price wavered on Sunday, remaining in a tight range where it has been stuck in the past few days. BTC was trading at $118,350 on Sunday, lower than the year-to-date high of $123,200. This article explores why it is expected to rebound this week.
Bitcoin Price Has Formed a Bullish Pennant Pattern
The main reason why the BTC price will rebound sharply this week is that it has formed a common continuation pattern known as a bullish pennant.
A bullish pennant comprises a vertical line and a symmetrical triangle. A breakout happens when the two triangle lines are about to converge.
The price target in a bullish pennant is estimated by measuring the height of the flagpole and then the same distance from its upper side. In this case, the pennant has a height of about 20%. Measuring the same distance brings the target to $148,193.
The bullish Bitcoin price forecast is supported by the fact that it has remained above the 50-day and 100-day moving averages, a sign that bulls are in control. It also remains above the crucial support level at $109,330, the upper side of the inverse head-and-shoulders pattern.
Therefore, the most likely scenario is where the Bitcoin price stages a strong comeback this week. A strong breakout will likely push it to the all-time high of $123,200. A move above that level will point to more upside later this year.
Stable Bitcoin Open Interest
The other bullish catalyst for the Bitcoin price is the stable futures open interest. Data shows that the open interest has jumped to over $84 billion. It has remained above $80 billion in the past few weeks.
A surging open interest in a time when a coin is stable is often seen as a highly bullish catalyst. Futures open interest refers to the amount of unfilled call and put options.
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Bitcoin ETF inflows Point to Accumulation
The BTC price may stage a strong bullish breakout due to the ongoing accumulation by American investors. Data shows that spot Bitcoin ETFs have added assets for seven consecutive weeks, bringing the cumulative inflows to $54.8 billion.
Although last week’s Bitcoin inflows were the lowest in months, they indicate strong demand from institutional investors. Blackrock’s IBIT ETF has added over $57 billion in inflows since its inception, bringing its total assets to over $86 billion.
There will be several catalysts for the Bitcoin price this week, including the Federal Reserve’s interest rate decision, top earnings reports from companies like Microsoft and Apple, and the US nonfarm payrolls (NFP) data.
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