Constructive Market Structure Signals Parabolic Rally Ahead
A declining U.S. dollar amidst growing optimism in the crypto market has resulted in a positive outlook for Bitcoin in the short term. The recent decrease in leveraged crypto trading has paved the way for a potential rally beyond $111.9k.
The escalating tensions between the United States and the European Union have led to a weakening of the dollar against major global currencies. In this uncertain macroeconomic environment, investors are turning to the cryptocurrency market, with Bitcoin emerging as a preferred hedge.
Since the start of the Doland Trump administration in 2025, three states – New Hampshire, Arizona, and Texas – have passed bills approving strategic Bitcoin reserves in both the senate and House. Over the past six days, Bitcoin’s investment products have seen a net cash inflow of approximately $2.3 billion, as reported by CoinShares.
With the CME futures and options markets showing a bullish sentiment, it is expected that BTC price will soon enter a phase of euphoria in the 2025 crypto bull run.
Bitcoin Price Expectations in the Midterm
In the 1-hour timeframe, BTC price has been trending within a parallel channel since hitting a local low of around $74.8k in April. Recently, the price of BTC faced rejection at the upper boundary of the channel, indicating a potential drop towards the lower boundary.
Additionally, the 1-Hour MACD line has crossed below the zero line, with the histograms displaying a bearish trend over the past couple of days.
Looking at the daily timeframe, BTC price seems to be following a similar fractal pattern to the Q4 2024 bullish breakout. If the price of BTC consistently closes above the upper boundary of the channel in the coming days, a potential rally towards $140k could be on the horizon. However, a sustained close below the lower boundary of the channel might lead to renewed bearish pressure, potentially pushing the price back towards $74k.
Overall, the weakening of the U.S. dollar and the positive sentiment in the crypto market are setting the stage for a bullish run for Bitcoin in the near future. Investors are closely watching the price movements and market indicators to capitalize on the potential opportunities in the evolving landscape of digital assets.
