As conflicts rage and the world’s leading economy stutters, Bitcoin is still serenely chopping sideways and consolidating above $100,000. What will be the ultimate direction for Bitcoin? Will it be a slow roll over and eventual collapse into a bear market, or is this just a pause to gather more energy for the next surge higher? US stock market to open after holiday Source: TradingView There was no trading on the US stock market on Thursday for Juneteenth National Independence Day. Therefore, it will be very interesting to see how the market reacts to developments on the Israel/Iran situation and the latest pronouncements from the Federal Reserve FOMC meeting which wrapped up on Wednesday. The weekly chart for the S&P 500 shows the spectacular v-shaped recovery after the Trump tariffs collapse. However, having got back to the major 6,000 point resistance level, it could be that the recovery is running out of steam. The markets open very soon, so more will be known by the end of the trading day. More chopsolidation, but back to a higher range? Source: TradingView In the short-term time frame for $BTC it can be seen that the price has just risen above the $106,000 resistance. If it can also pierce through the descending trendline, this would leave the path open for the bulls to attempt to lift the price above the last swing high at $109,000. This isn’t to say that the price will carry on back to the all-time high, but rather that the ‘chopsolidation’ can continue, until such time as things start to improve geopolitically or economically, or until the all-important force of global liquidity drives assets higher again. Weekly momentum indicator turning back bullish Source: TradingView Zooming out into the weekly time frame the sideways price action can be seen to be building on top of the price structure formed from late 2024 and into January of 2025, while at the bottom of the chart, the Stochastic RSI on the weekly time frame is showing that the fast (blue) indicator is shaping to turn back up again. This is hugely critical for bullish price action going forward. If, by the end of Sunday, this indicator is still posturing upwards, and better still, if it manages to cross back above the slow (orange) indicator line, positive price momentum can continue to flow into Bitcoin, potentially providing the fuel to take the price up past the $112,000 high and into further price discovery. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
