Bitcoin broke above a key resistance level, leaving analysts excitedly speculating about potentially historic price surges and an imminent bullish trend in the cryptocurrency market.
Bitcoin has finally broken out of its tight trading range, potentially signaling a rise in its value. After hovering between $25,000 and $30,000 for most of the year, the cryptocurrency surged to $35,000 on Monday. Experts predict that the bitcoin price will continue to see higher lows and higher highs in the coming months.
Ari Wald, a technical analyst at Oppenheimer, points out that the daily relative strength index of bitcoin has reached above 80 for the first time since January. While this is typically seen as an overbought condition, Wald believes it indicates that the price is still accelerating. He expects the current trend to continue, with pullbacks providing buying opportunities.
Wald also mentions that the 200-day moving average of $28,000 could potentially serve as a new support level for bitcoin. At the same time, the cryptocurrency faces key retracement levels from its decline in 2021-2022. If bitcoin can surpass the $32,000 level, it could pave the way for further gains, potentially reaching the range of $38,000 to $40,000, according to Jonathan Krinsky, chief market technician at BTIG.
For Julius de Kempenaer, a senior technical analyst at StockCharts.com, the former resistance level of around $31,000 could now act as support. He believes that buyers are becoming more aggressive, pushing the price higher. De Kempenaer sees the risk/reward ratio favoring bitcoin once again.
Overall, the breakout in the bitcoin price is seen as a positive sign for investors. With potential support levels and resistance levels in sight, experts are optimistic about the future trajectory of the cryptocurrency.