Positive sentiment in the cryptocurrency market is currently being driven by:
→ The approval of a bill regulating the status of stablecoins;
→ Easing geopolitical tensions (a ceasefire in the Middle East and a trade agreement between China and the US);
→ Weakening US dollar, which increases the attractiveness of assets priced in USD.
These and other developments have contributed to a strong bullish impulse (indicated by the arrow) on the BTC/USD chart. According to media reports, $2.2 billion was invested in Bitcoin over the past week, signalling an acceleration in capital inflows. Since the beginning of 2025, nearly $17 billion has been invested. So, how might things unfold from here?
The chart shows that Bitcoin price movements have formed an ascending channel (highlighted in blue), with a strong rebound from the psychological $100k level (whose significance we discussed on 23 June) underscoring robust demand and casting doubt on the idea that Bitcoin might ever stabilise in the five-digit range again.
From a technical perspective, the setup resembles a Bull Flag pattern, forming (as marked by the red lines) within a long-term uptrend. This is a potentially powerful scenario, in which a breakout above the upper boundary of the pattern could lead to a continuation of the broader rally.
In the short term, bulls might encounter resistance along the red trendline; however, note the aggressive surge marked by the arrow. In Smart Money Concept terms, this could be interpreted as a Fair Value Gap pattern — indicating strong buyer dominance. It’s also worth noting that the broad area shaded in purple might act as a support zone for bulls attempting to break through the corrective structure.
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*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
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