Bitcoin looks close to a breakout here! $IBIT – June 4, 2024
This is Scott at StockMarketMentor.com with your Chart of the Day. I want to take a look at Bitcoin. Bitcoin looks to be close to a pretty clean breakout here.
Looking at Bitcoin via Coinbase ( NASDAQ: COIN ), and we can see it’s been in some long-term consolidation since March. Bitcoin has basically gone sideways and chopped around for almost 100 days. It’s been 94 days or so since this breakout here, about 68,000.00 in March. Yes, it’s had some highs, it’s had some lows, but ultimately has just ground around that $70,000.00 level.
That’s where we are right now, we’re holding in and around 70,000.00, which I actually think is pretty bullish for Bitcoin. The fact that it’s able to hold up around this level, hold up near the highs, tells me that there’s at least a bid under Bitcoin keeping this market afloat. Now, I think a lot of that bid is coming from some of the Bitcoin ETF flows.
We just found out today that the iShares Bitcoin Trust ( NASDAQ: IBIT ) has become the fastest ETF ever to accumulate over $20 billion in assets. And so I definitely think that if the flows keep coming into Bitcoin we’re going to see a breakout here in BTC really soon. And you’re going to want to pay attention to some of the Bitcoin stocks like the iShares Bitcoin Trust ( NASDAQ: IBIT ).
I have an alert level here on IBIT ( NASDAQ: IBIT ) just under that $41.00 level. That seems like a pretty interesting resistance zone. You can see how it was a congestion zone for price here, resistance here, support here. It broke down, and now we’re just underneath that level.
So I think that $41.00 level on IBIT ( NASDAQ: IBIT ) could be a potential breakout zone. And if we are able to get above and stay above with a move through that level coming on volume, then I think you’re going to want to take a look at Bitcoin and see if it is also challenging the all-time highs.
I think just looking at Bitcoin you probably want to have an alert just under 72,000.00, 71,900.00 I think definitely makes sense. You can see how important that zone is there, set an alert there, set an alert on IBIT ( NASDAQ: IBIT ), and look for a breakout here in Bitcoin. I think that the $72,000.00 level is pretty important and that could translate into a big move through $41.00 here on IBIT ( NASDAQ: IBIT ).
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