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bitcoin is at a crucial moment after surpassing the $68,000 mark and setting a new local high, confirming its bullish trend.
Analysts and investors are closely monitoring the next steps, looking for signs of a continued rally or a possible pullback from higher supply levels. While enthusiasm is palpable, there is caution as traders prepare for possible resistance.
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Top analyst Daan shared a technical analysis highlighting that bitcoin has broken out of an accumulation channel, suppressing the price. According to Daan, this break above the $68,000 resistance level indicates potential for further growth 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. With euphoria colliding with fear 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 Breakout: New ATH Next?
The cryptocurrency market is bullish as bitcoin and most altcoins have gone 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 drive prices to new highs and generate massive profits for investors. Despite the enthusiasm, fear of an imminent correction also persists.
Historically, bitcoin has struggled to maintain momentum above the bid near $70,000, often facing strong rejections leading to sharp declines.
However, leading cryptocurrency analyst and investor Daan recently x.com/DaanCrypto/status/1847004907821281783″ target=”_blank” rel=”nofollow”>shared a technical analysis on xwhich explains why this recent breakout could differ. According to Daan, bitcoin finally broke a 7-month accumulation pattern that had kept prices low, indicating a significant change in market dynamics.
Additionally, btc has managed to break above the 200 daily moving average (MA) and exponential moving average (EMA), key technical indicators that had previously caused resistance since the summer.
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With the short and medium-term trend firmly up, Daan believes this bullish outlook may suggest that bitcoin could avoid another rejection near $70,000. Instead, btc could be gearing up for a powerful surge, with investors expecting new all-time highs in the coming weeks.
btc technical analysis
Since Monday, bitcoin has tested a crucial supply zone following a sharp 9% surge. The price is trading well above the Daily 200 moving average (MA) and exponential moving average (EMA), indicating strength and maintaining bullish momentum with no immediate signs of pullback.
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 will fail to break and hold the $70,000 mark, which is critical for bulls to maintain bullish momentum. A rejection at this level could signal a change in market sentiment, which could lead to profit-taking and consolidation.
Historically, such moments of market euphoria often end with a discouraging move that cools the excitement, and a healthy pullback is possible.
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If btc experiences a pullback, it is likely to find strong support at the 200 daily MA around $63,304. This level has acted as a key support indicator in previous uptrends. It could provide a solid foundation for the next leg higher if the price corrects before resuming its bullish trajectory.
Featured image of Dall-E, TradingView chart
