Bitcoin is at a crucial moment after surpassing the $68,000 mark and establishing a new local high, confirming its upward trend.
Analysts and investors are closely monitoring next steps, looking for signs of a continued recovery or a potential setback in the face of higher supply levels. While the excitement 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 broke out of an accumulation channel, suppressing the price. According to Daan, this break above the $68,000 resistance level signals potential for further upside as Bitcoin moves into uncharted territory.
The next few days will determine whether BTC Can Maintain Its Momentum or face a healthy pullback from these higher levels. With euphoria colliding with fears of a correction, investors are eager to see whether Bitcoin can continue its upward trajectory or whether the market will see a pause in the recovery.
Bitcoin Break Out: New ATH Near?
The crypto market is bullish as Bitcoin and most altcoins have risen 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 deliver massive gains to investors. Despite the excitement, there is also a lingering fear of an imminent correction.
Historically, Bitcoin has struggled to maintain momentum above supply near $70,000, often facing strong rejections that lead to sharp declines.
However, leading crypto analyst and investor Daan recently shared a technical analysis on Xexplaining why this recent breakup might be different. According to Daan, Bitcoin has finally broken out of a 7-month accumulation pattern that kept prices low, signaling a significant shift in market dynamics.
Furthermore, BTC managed to break well above the 200 daily moving average (MA) and exponential moving average (EMA), key technical indicators that had already caused resistance since the summer.
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With the short to medium term trend firmly up, Daan believes this bullish outlook could suggest that Bitcoin could avoid another rejection near $70,000. Instead, BTC could be gearing up for a powerful surge as investors eye new all-time highs in the coming weeks.
BTC Technical Analysis
Since Monday, Bitcoin has tested a crucial supply zone after a sharp 9% rise. The price is trading well above the 200 daily moving average (MA) and exponential moving average (EMA), signaling strength and maintaining bullish momentum with no immediate signs of pullback.
This indicates that buyers remain in control for now, with potential momentum to move above the psychological $70,000 level.
However, there is still a risk that Bitcoin will not be able to break through and maintain the $70,000 mark, which is critical for bulls to maintain upward momentum. A rejection at this level could signal a change in market sentiment, potentially leading to profit-taking and consolidation.
Historically, these moments of market euphoria often end with a dismal move that cools the excitement, and a healthy pullback is possible.
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Should BTC experience a pullback, it is likely to find strong support in the daily 200 MA around $63,304. This level has acted as a key indicator of support in previous uptrends. It could provide a solid foundation for the next leg higher if the price corrects before resuming its upward trajectory.
Featured image of Dall-E, TradingView chart