Bitcoin Needs Confirmed Weekly Close Before Rallying Future Highs

Daan Crypto Trades, a popular trader, pointed out that despite a late-minute recovery, Bitcoin needs a more convincing weekly candle close to confirm further growth. "The weekly candle does not look very promising in terms of breaking the historical maximum. I would like to see a strong continuation, especially considering the capital inflows into ETFs amounting to over $2 billion that came after the previous maximum was broken," he wrote to his followers on social media platform X. This indicates that a more substantial momentum is required for confirmation. Other analysts are already considering new record highs with a price reversal slightly below $107,000. "BTC broke out successfully. Now, it’s about continuation," summarized trader BitBull. "A clean breakout from consolidation, followed by a retest. If this structure holds, the next target is $155,000. Only a trigger is needed for this impulse." However, concerns have been raised about the rising yields on bonds among experts.

Analysis

The current analysis highlights the importance of confirming bullish signals with strong weekly candles in Bitcoin's price chart. The recent recovery suggests potential upward movement, but traders and analysts demand more definitive signs for sustained growth.

The mention of significant ETF inflows signifies institutional interest, which often acts as a catalyst for price rallies. Nevertheless, the cautious tone reflects the uncertainty present in these signals, emphasizing the need for confirmation through technical patterns such as a robust weekly close.

The optimism among some analysts about reaching new highs with targets near $155,000 depends on the current breakout structure holding firm. The retest after the breakout from a consolidation phase is a typical pattern in technical analysis, and its success will be pivotal for the next move.

On the other hand, the rising bond yields introduce macroeconomic risks that could affect investor sentiment toward equities and cryptocurrencies alike. These macro factors tend to influence the risk appetite of traders and could potentially dampen bullish expectations if not managed carefully.

Recommendation

Given the current scenario, it is prudent to wait for a more decisive weekly candle close before considering new long positions. This additional confirmation can reduce the risk of a false breakout and provide a clearer signal for sustained upward momentum.

Traders should monitor the retest phase after the breakout closely. If the retest holds and the structure remains intact, it could be an ideal entry point for a bullish position targeting higher levels, such as $155,000.

Meanwhile, investors should remain cautious about macroeconomic influences, especially rising bond yields, which could create headwinds for positive price developments in Bitcoin. A balanced approach that considers technical signals along with macroeconomic factors is advisable in this environment.