Yesterday, Bitcoin (BTC) surmounted the significant resistance at $12K to kickstart a steady uptick. In the following sessions, the king coin gained momentum and even surged above the resistance near $12,200 to form a new monthly high at $12,479.
Bitcoin price is consolidating gains just below the $12,400 level of support at its current price of $12,232. Having broken above crucial resistance levels, BTC looks set to see a surge to the upside.
BTC Is On the Edge of a Huge Rally
As per a tweet from analyst “Vortex,” several signs indicate the start of a new multi-year bull run in the BTC market.
Firstly, the hash rate of the BTC blockchain has hit a new ATH as more mining farms switch to highly efficient hardware. According to analysis from digital asset manager and crypto analyst Charles Edwards, increased mining activity is historically associated with BTC price rallies on a macro scale.
Secondly, exchanges have ramped up efforts to adopt the latest BTC scaling tech known as Segregated Witness (SegWit). Vortex asserts that this tech enables the blockchain to handle more transactions, allowing users to transact in Bitcoin at reduced costs.
Another clear sign pointing to an imminent BTC surge is data from the latest Google trends that shows an uptick in Bitcoin-related searches.
This revamped interest in the flagship crypto is partly attributable to celebrity trader Dave Portnoy entering the crypto with a whopping $200K BTC purchase. He also actively promoted the coin to over 1.7 million individuals who follow his investment decisions.
Moreover, the Federal Reserve’s new stimulus policies have pumped vast amounts of money into the economy, thus prompting more investors to enter BTC markets in search of a hedge against rising inflation.
Lastly, the crypto markets have seen a significant increase in investors “HODLing” their BTC, resulting in about 63% of all BTC not moving in a year. This trend was last seen at the beginning of the 2015-2017 bull run, which drove the BTC price to $20K.
Where Could the BTC Price Be Headed Next?
According to the chart below, a critical bullish flag pattern is currently forming with resistance near $12,380.
This formation indicates that bitcoin price could see a fresh surge if the asset breaks above the flag resistance and the $12,400 level.
A move above $12.4K could drive the world’s leading digital asset toward the immediate resistance near $12,500.
If the bulls fuel BTC above $12,500, the resultant momentum will likely open the doors for an uptick towards $13K in the coming sessions.