Bitcoin Breaks Out of Trading Range and Surges to $35,000
Bitcoin has finally broken out of its tight trading range between $25,000 and $30,000, reaching a price of $35,000 on Monday. This upward movement suggests the potential for higher highs in the future. According to chart analysts, investors should anticipate both higher lows and higher highs in the bitcoin price over the coming months. The daily relative strength index (RSI) for bitcoin has surpassed 80 for the first time since January, indicating strong price momentum. While this is typically seen as an overbought condition, it also suggests that the price is still accelerating.
Pullbacks Present Tactical Buying Opportunities
Ari Wald, a technical analyst at Oppenheimer, believes that this trend of rising prices will continue rather than reverse. He notes that pullbacks in the price should provide tactical opportunities for purchase, similar to when bitcoin tested the 200-day moving average in March 2023. Wald identifies the 200-day moving average of $28,000 as a potential new support level for bitcoin as it encounters key retracement levels from its decline in 2021-22. Previously, many chart analysts considered the support level to be around $25,000.
Potential Price Targets and Shift in Market Sentiment
If bitcoin manages to surpass the $32,000 level, it could potentially reach a range of $38,000 to $40,000. Jonathan Krinsky, chief market technician at BTIG, suggests that clearing this level would open the door to further gains. Julius de Kempenaer, senior technical analyst at StockCharts.com, points out that bitcoin’s former resistance level of approximately $31,000 may now become a support level. He sees the next resistance level ranging as high as $47,000 to $48,000. De Kempenaer believes that the recent buying activity indicates a shift in market sentiment, with buyers becoming more aggressive and driving up the price of bitcoin.
Hot Take: Bitcoin’s Breakout Indicates Positive Momentum
The recent breakout of bitcoin from its trading range and the subsequent surge to $35,000 suggest positive momentum for the cryptocurrency. Chart analysts predict higher lows and higher highs in the coming months, with pullbacks presenting buying opportunities. The daily relative strength index reaching above 80 indicates strong price acceleration. Key support levels are identified at $28,000 and $25,000, while potential resistance levels range from $38,000 to $40,000 and even higher. The market sentiment has shifted in favor of bitcoin, with buyers becoming more aggressive. Overall, this breakout signifies a promising trend for bitcoin’s future performance.
By
By
By
By
By