Bitcoin ends downtrend and is set to pursue $71,500, says trader

Bitcoin (BTC) broke its June downtrend and resumed its previous uptrend in July, according to the trader identified as Rekt Capital. The goal now is to build a price foundation from which BTC can “springboard” up to $71,500 over time.

#BTC

Strong start to July as Bitcoin continues to develop its cluster of price action at the Range Low area (green)

The goal?

To build a foundation from which it will be able to springboard to the Range High area at ~$71500 over time$BTC #Crypto #Bitcoin pic.twitter.com/40FEmVTscz

— Rekt Capital (@rektcapital) July 1, 2024

Notably, Bitcoin formed a new higher low on the weekly timeframe by breaking its downtrend, added Rekt Capital. On the macro picture, the trader explained that Bitcoin is developing a macro bull flag pattern, which is positive for BTC in the long term. 

Moreover, BTC is consolidating within its accumulation range commonly observed after past halving events, and this is also a bullish movement. “This extended consolidation period means that Bitcoin is slowly synchronizing with traditional Halving cycles after an accelerated Pre-Halving period.”

After the quarterly closure, Bitcoin also showed that a major previous resistance close to the $63,000 price level was successfully tested and became a new support. Additionally, the spot Bitcoin ETFs registered over $129 million in net inflows on July 1st, being the largest inflow amount for the past three weeks. 

Bloomberg ETF analyst Eric Balchunas also showed surprise on X by discovering that Bitcoin ETFs showed positive net flows for the daily, weekly, and monthly periods. 

“Was expecting worse given BTC price fell $10k. During that stretch YTD net flow held steady at +14.6b. Good sign that number held strong during a ‘step back’ phase,” stated Balchunas.