The ongoing tensions between the United States and the European Union have caused the dollar to weaken against other major global currencies. In light of this, many investors are turning to the cryptocurrency market, with Bitcoin leading the way as a safe haven investment.
In a significant move, three states – New Hampshire, Arizona, and Texas – have recently passed bills to create strategic Bitcoin reserves. This, coupled with a net cash inflow of $2.3 billion into Bitcoin investment products in the past week, as reported by CoinShares, indicates a growing interest in the digital asset.
With the CME futures and options markets showing a bullish sentiment, it is expected that Bitcoin’s price will soon enter the euphoric phase of the 2025 crypto bull run.
Analyzing the current market trends, Bitcoin’s price has been following a parallel channel since hitting a low of $74.8k in April. Recent price action suggests a potential drop towards the lower border of the channel after being rejected at the upper border.
Looking at the MACD line on the 1-hour chart, it has dipped below the zero line, with histograms showing a bearish trend over the past few days. This could signal further downside potential in the short term.
On the daily timeframe, Bitcoin’s price is mirroring a fractal pattern similar to the bullish breakout seen in Q4 2024. If the price manages to close above the upper border of the rising channel in the coming days, a rally towards $140k could be on the cards. Conversely, a sustained close below the lower border could see a renewed bearish pressure pushing the price back towards $74k.
In conclusion, with the geopolitical landscape in flux and growing interest in cryptocurrencies as a hedge against economic uncertainty, Bitcoin’s price movements will continue to be closely watched. Investors should stay informed with the latest news and analysis to navigate the ever-changing crypto market landscape.