Bitcoin's price remained stable over the weekend, increasing to the crucial resistance level of $118,000 as numerous bullish catalysts converged.
Summary
Bitcoin's price could shoot to a new all-time high this week.
It has formed a bullish flag pattern on the daily chart.
Bitcoin ETF inflows have continued to increase this month.
Bitcoin (BTC) was trading around $118,500 in the last check on Sunday, rising sharply from last week's low of $112,000. This trend may continue this week, and observers expect a new all-time high.
Bitcoin's price will reach ATH as the bullish flag activates
The daily chart shows that BTC's price has been forming a bullish flag pattern, which often precedes a strong breakout. This pattern started forming on June 22 when it bottomed at $98,320 and reached the all-time high of $123,200, giving it a height of nearly $25,000.
It has been forming the flag section, which is characterized by a downward channel. Now, there are signs that it is breaking above the upper side of the flag.
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The price target in a bullish flag pattern is estimated by adding the height of the flag to the breakout point, which, in this case, is at $117,000. Adding the two gives the price target of $142,000.
The other catalyst for Bitcoin's price is that it remains above the 100-day Exponential Moving Average. It has also formed a breakout and retest pattern after falling to support at $112,000, which was its previous all-time high.
Major indicators also point to more gains in the short term. The Relative Strength Index has increased and crossed the neutral point at 50. Other oscillators, such as the MACD and MFI, have also pointed upwards.
BTC price chart | Source: crypto.news Hopes for Federal Reserve rate cuts and ETF inflows
Bitcoin's price has potential catalysts that could drive its increase to a historic high this week. For example, data shows that U.S. investors have continued to accumulate it. ETF inflows increased by over $246 million last week, a significant shift from the net outflows of $643 million from the previous week.
The growing demand for Bitcoin, including that from treasury companies, occurred as the supply on exchanges has fallen to the lowest level in years, which is bullish.
Meanwhile, the odds that the Federal Reserve will begin cutting interest rates at the September meeting have increased. These odds surged after the U.S. published weak non-farm payroll data earlier this month.
The probability is likely to increase if the U.S. publishes weaker-than-expected consumer price index data on Tuesday. Economists expect the data to show that the overall CPI rose to 2.8% in July as the impact of tariffs began to show.
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