BTC forming a bullish pattern

The price of Bitcoin came under intense pressure this week as concerns about demand and ETF flows continued. Bitcoin is on track for the second consecutive week in the red, moving below the key $65,0000 support level.

Bitcoin is down more than 12% from its all-time high and it may seem like the bears are in complete control. More local Bitcoin ETFs continued to see outflows after the coin failed to cross the $72,000 resistance point last week. The data shows that all ETFs recorded net outflows of $145.9 million, led by the Fidelity Wise Origin Bitcoin Fund (FBTC).

These outflows accelerated after the Federal Reserve showed aggressive interest decision on fees. In it, the bank left interest rates unchanged between 5.25% and 5.50% and suggested a cut later this year.

The price of Bitcoin also fell after data showed that most Bitcoin mining companies were selling their coins. The data shows that miners, including major players like Marathon Digital and Riot Platforms, have been selling their assets for 33 consecutive days.

Bitcoin Price Prediction

BTC Weekly Chart

Bitcoin formed a golden cross pattern in March 2023 when the 200-week and 50-week exponential moving averages (EMA) made a bullish crossover. It has remained above these averages ever since. Most importantly, Bitcoin is forming a cup and handle pattern, a popular bullish continuation signal. The recent consolidation is likely part of the shoulder section.

Therefore, there is a probability that Bitcoin will end up having a bullish breakout in the short term. Such a breakout will be confirmed when the price rises above the year-to-date high of $73,500.

The main risk to the bullish thesis is that Bitcoin has formed a small double top pattern at $72,473. A double top is one of the most bearish signals in the market. As such, there is a possibility that it could fall and retest its neckline at $56,578, which is 12.65% below the current level.

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