Basic Uptrend Support Logic for BITSTAMP: BTCUSD By: TheodoreHall — TradingView

📈 1. Strong medium-term upward trend, ideal ascending channel
Since the March low of $65,403, daily price lows have been rising, highs have been rising, and the slope of the ascending channel is steep. The medium-term bullish structure remains intact and the uptrend is irreversible.

The support levels of $79,000-79,300 (strong support on the hourly chart, lower limit of the consolidation range) and $78,200-78,600 (4-hour moving average, bullish support line, strong institutional support) are unbreakable. Once these levels are breached, a bounce/breakout is expected.

🏦2. Strong support from institutions and major investors, unlimited buying pressure
ETFs have had net inflows for five consecutive weeks, with an inflow of US$629.7 million on May 1. Institutional funds continue to enter the market and show no signs of exiting. The price range between $78,000 and $79,000 represents the basic carrying cost of institutions, and there is huge buying pressure below this price range.

Positions among large long-term investors are at an all-time high, while stock market holdings are at a 70-year low, floats are fully booked and immediate selling pressure is non-existent. The current consolidation at the highest level is only a temporary liquidation process; after the breakthrough, there will be no selling resistance.

⚡ 3. The short-selling momentum has been completely exhausted; this violation will put huge pressure on the market. The short-term RSI has dropped to 65 (strong but not overbought) and the MACD is widening, indicating that the short momentum has completely subsided without any countervailing force.

The current price is close to the purchase cost set by short position holders, which is between $79,800 and $80,100. A break above this level would trigger massive stops on the short side, with massive price pressure and a rapid rise towards prices between $81,000 and $82,000.