Bitcoin (BTC) made its highest ever weekly close on Sunday, and is consolidating above the top of its bull flag once again. Indicators are now pointing to an imminent price surge. How soon could this take place?
US spending about to push assets higher
As Bitcoin jockeys for position, ready for a potential incoming surge, the passing of President Trump’s “Big Beautiful Bill” on Thursday, with the promise of $5 trillion in new spending, is likely to provide plenty of fuel for Bitcoin’s next upward trajectory.
The amount of new money that can hit the US economy could be akin to that of the vast wall of money that was printed by the US administration during the Covid pandemic. Rightly or wrongly, given the gargantuan pile of debt that the US already has outstanding, the incoming tsunami of money from the US, plus increasing levels of global liquidity, should push all assets very much higher.
$BTC back above the bull flag - but not spiking yet
Source: TradingView
As seen on the 4-hour time frame, the $BTC price is back above the upper trendline of the bull flag. Granted that it’s still not surging, and that the Stochastic RSI is rolling back over, a big pump to the upside may not happen for a little while yet.
The price is following an ascending trendline (faint dotted line) but it would not be a surprise if $BTC fell through this and continued to roll along the upper bull flag trendline for a period, although the setup is looking very bullish and a spike higher could come at any time.
A retest of the bull flag breakout?
Source: TradingView
The daily time frame reveals how the price has moved back out of the flag and could be about to test the top of the bull flag upper trendline. Bulls will be hoping that this is a successful test and not another fakeout.
To make the test, the price would need to come down to around $108,500. This could also allow the price to remain above the ascending trendline.
At the bottom of the chart, the RSI has the indicator line pointing downward, but this may be to allow another retest of the yellow moving average line. Staying above this line, and getting above the 70.00 level will be key.
Bullish weekly close provides platform for imminent surge
Source: TradingView
The weekly time frame view shows that a candle body has opened above the upper trendline of the bull flag. While this is very bullish, just as bullish is the cross back up of the indicators on the Stochastic RSI. This comes at the same time as a cross up on the 2-week time frame.
With price action looking very positive, and indicators also closing the last week with bullish signals, it would seem as though it’s just a matter of time before the next Bitcoin price surge. Hold on to your hats when it happens.
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.
