• Bitcoin has overcome resistance at $32,000
• Technical analysts expect further upside after recent breakout
• Is the enthusiasm for Bitcoin back?
On Tuesday, new hope for the approval of a Bitcoin spot ETF in the USA caused the cryptocurrency Bitcoin to awaken from its months-long slumber and rise sharply. Bitcoin temporarily climbed above the $35,000 mark, marking its highest level since May 2022. The oldest cryptocurrency continues to do well and continues to move in the range between $34,000 and $35,000. According to chart technology experts, the coin’s breakout from its most recent trading range is a very good sign and sets the stage for another significant increase by the end of the year.
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Technical analysis: Bitcoin will continue to rise
“As Bitcoin enters a historically bullish phase of its four-year halving cycle and major central banks appear to have almost completed rate hikes, there are also broad tailwinds for the price of the world’s largest crypto asset,” writes Matt Weller, global head of research at CFD provider City Index, in an analysis on the company website. Various experts in the field of chart technology agree that the recent breakout above the previous resistance at $32,000 provided a bullish signal. Julius de Kempenaer, for example, describes the jump over the $32,000 mark and the touch of the $35,000 mark to “MarketWatch” as a “very significant step” for Bitcoin, as the coin thus faces a strong level of resistance overcome above. “Technically speaking, BTC/USD will have a bullish bias as long as it stays above $32,000,” Matt Weller of City Index agrees with this assessment. Only if Bitcoin falls below this level again will the short-term bullish trend be wiped out.
However, there is disagreement about how high Bitcoin bulls will push the cryptocurrency in the next few weeks. Crispus Nyaga, financial analyst at DailyForex, points out in his analysis that the BTC/USD pair is currently above the Arnaud Legoux Moving Average (ALMA) – an important technical indicator for crypto traders – of the last 50 and 100 days and also moving above the Ichimoku Cloud indicator. He therefore assumes that buyers are now targeting the next resistance point at $37,000. Expert Matt Weller from City Index sees Bitcoin “room for a sustained rise towards $36,000 […] followed by the next psychological level of 40,000 US dollars.” However, chart technician Julius de Kempenaer is particularly optimistic. According to “MarketWatch”, he sees the next significant resistance for Bitcoin at 47,000 to 48,000 US dollars and expects the cryptocurrency to overcome this Will test at the end of the year.
Bitcoin trading with significantly higher activity
Bradley Duke, Chief Strategy Officer of the ETC Group, was somewhat more cautious in telling MarketWatch. “It’s only in hindsight that we can tell if this rally is actually gaining traction, but it does feel like enthusiasm for Bitcoin is returning,” Duke said. Key figures that measure activity on the crypto market also suggest that after the recent movements, more investors are actually interested in Bitcoin again than during the previous, comparatively boring sideways phase. According to the news site, data from the crypto derivatives exchange Deribit shows that, for example, the 24-hour trading volume for Bitcoin on Tuesday was almost twice as high as it was a week ago.
Editorial team finanzen.net
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