This article is available in Spanish.
Bitcoin is at a crucial juncture after surging past the $68,000 mark and hitting a new local high, confirming the bullish uptrend.
Analysts and investors are closely watching the next steps, looking for signs of a continued rally or a possible return of higher supply levels. While the excitement is palpable, caution is advised as traders prepare for potential resistance.
Related reading
Top analyst Daan shared a technical analysis highlighting that Bitcoin has broken out of an accumulation channel, suppressing its price. According to Daan, this breakout above the $68,000 resistance level signals the potential for further upside as Bitcoin moves into uncharted territory.
The coming days will determine whether BTC can maintain its momentum or face a healthy pullback from these higher levels. As euphoria collides with fears of a correction, investors are eager to see if Bitcoin can continue its upward trajectory or if the market will see a pause in the rally.
Bitcoin Break Out: New ATH Next?
The crypto market is bullish as Bitcoin and most altcoins have risen from yearly lows to yearly highs in just a few weeks.
Analysts are now speculating that this could be the start of something big: a rally that could push prices to new highs and deliver huge profits for investors. Despite the excitement, there is also a lingering fear of an impending correction.
Historically, Bitcoin has struggled to maintain momentum above the near $70,000 range, often facing strong rejections that led to sharp declines.
However, top crypto analyst and investor Daan recently shared a technical analysis on Xwhich explains why this recent outbreak could be different. According to Daan, Bitcoin has finally left behind the seven-month accumulation pattern that had kept prices low, signaling a significant shift in market dynamics.
Moreover, BTC has managed to break well above the Daily 200 moving average (MA) and the exponential moving average (EMA), key technical indicators that previously provided resistance since the summer.
Related reading
With the short-to-medium term trend firmly up, Daan believes this bullish outlook could indicate Bitcoin could avoid another rejection near $70,000. Instead, BTC may be gearing up for a powerful surge, with investors eyeing new all-time highs in the coming weeks.
BTC Technical Analysis
Since Monday, Bitcoin has tested a crucial supply zone after surging 9%. The price is trading well above the Daily 200 moving average (MA) and exponential moving average (EMA), which is a sign of strength and maintains bullish momentum with no immediate signs of a return.
This indicates that buyers remain in control for now, with potential momentum to break above the psychological level of $70,000.
However, there is still a risk that Bitcoin may fail to break and hold the $70,000 barrier, which is crucial for bulls to maintain upward momentum. A rejection at this level could signal a shift in market sentiment, potentially leading to profit-taking and consolidation.
Historically, such moments of market euphoria often end with a disheartening move that cools the excitement and allows for a healthy return.
Related reading
Should BTC experience a pullback, it is likely to find strong support at the daily 200 MA around $63,304. This level acted as a key indicator of support in previous uptrends. It could provide a solid foundation for the next rise if the price corrects before resuming its bullish trajectory.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
