Bitcoin continues to break through resistances, with the alpha cryptocurrency surpassing $36,000 on Thursday. The question on everyone’s mind is: how much higher can it climb?
Bitcoin and Crypto Lead Financial Markets
After being the first to enter the bear market of 2022, it appears that bitcoin and the crypto sector may also be the first to lead the stock market and other sectors out of it. While the S&P 500 has increased by approximately 16% since the end of 2022, bitcoin has surged by 126% over the same period, not to mention several altcoins that have experienced gains of over 1000%.
Bitcoin Above Long-Term Trend
According to Trading View, Bitcoin is currently trading above its very long-term trend line dating back to March 2020. If it can maintain this position, the price will have a strong foundational support for further upward movement. Additionally, the price is just above the 0.382 Fibonacci level.
Shorter Time Frame
On a shorter-term 4-hour time frame, Bitcoin’s price has broken through the top of a rising channel. Maintaining this position would be incredibly bullish, as a rising channel typically indicates bearish trends.
Oversold Territory – Traders Beware
However, traders should exercise caution as Bitcoin’s Relative Strength Indicators (RSI) have entered oversold territory. The Stochastic RSI momentum indicators are also peaking, suggesting an impending pullback. The depth of this potential pullback remains uncertain and only time will reveal its extent.
Hot Take: Is Bitcoin Set for a Continued Surge?
As Bitcoin surges past $36,000 and shows signs of potential pullback from oversold territory, investors are left wondering whether this is just a temporary correction or a sign of a larger downward trend. With various indicators pointing in different directions, only time will tell whether Bitcoin’s upward trajectory will continue or if a significant correction is on the horizon.
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