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Bitcoin is in an important period after passing the $68,000 mark and setting a local high, confirming its bullish rise.
Analysts and investors are closely monitoring the next steps, looking for signs of an ongoing rally or a possible lead from higher supply levels. While the excitement is palpable, there is caution as traders prepare for potential resistance.
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Senior analyst Daan shared a technical analysis highlighting that Bitcoin has broken out of the accumulation channel, depressing the price. According to Daan, this breakout above the $68,000 resistance level indicates the possibility of another Bitcoin rally as Bitcoin enters uncharted territory.
The next few days will determine whether BTC can maintain its momentum or face a healthy pullback from these highs. With a mix of excitement and fear of a correction, investors are eager to see if Bitcoin can continue its upward trajectory or if the market will see a break in the rally.
Bitcoin Break Out: New ATH Next?
The crypto market is optimistic, as Bitcoin and many altcoins have risen from annual lows to annual highs in just a few weeks.
Analysts are now speculating that this could be the start of something big—a rally that could push prices higher and bring big returns to investors. Despite the excitement, there is also a lingering fear of the direction to come.
Historically, Bitcoin has struggled to maintain momentum above supply near $70,000, often facing strong rejection leading to major declines.
However, top crypto analyst and investor Daan recently shared a technical analysis on X, explaining why this latest explosion may be different. According to Daan, Bitcoin has finally broken out of a 7-month rallying pattern that had kept prices low, indicating a major shift in market volatility.
In addition, BTC managed to break above the Daily 200 moving average (MA) and the exponential moving average (EMA), key technical indicators that have caused resistance since the summer.
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With the short-term to medium-term trend strongly rising, Daan believes that this bullish opinion may suggest that Bitcoin can avoid another rejection near $70,000. Instead, BTC may be preparing for a strong surge, with investors eyeing new all-time highs in the coming weeks.
BTC Technical Analysis
Since Monday, Bitcoin has tested a key supply zone following a strong surge of 9%. The price is trading above the Daily 200 moving average (MA) and the exponential moving average (EMA), the strength of the signal and maintaining the bullish momentum without any immediate signs of reversal.
This shows that buyers are still in control for now, with a possible push to break the psychological level of $70,000.
However, there is still a risk that Bitcoin may fail to break and hold the $70,000 mark, which is important for the bulls to maintain the upward momentum. A rejection at this level may indicate a change in market sentiment, which may lead to profit taking and consolidation.
Historically, such periods of euphoria in the market usually end with a bearish move that cools the enthusiasm, and a healthy rally can occur.
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If BTC experiences a pullback, it is likely to find strong support at the daily 200 MA around $63,304. This level has served as the main indicator of support in previous developments. It can provide a solid base for the next leg if the price corrects before resuming its bullish trajectory.
Featured image from Dall-E, chart from TradingView
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