Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market was riding a wave of disbelief and Bitcoin’s breakout above $30.8k could open the bullish floodgates.
- A retracement back to $28,000 could present a buying opportunity.
Bitcoin [BTC] saw no retracement below the $29,000 mark in the last two days. Instead, the bulls were able to defend the $29.6k level as BTC was trading at $30.7k at the time of writing.
Read Bitcoin [BTC] Price Forecast 2023-24
A recent report highlighted growing accumulation among Bitcoin sharks, but BTC miners and whales helped distribute the king coin. Despite the market sentiment of the past few weeks, demand and prices continued to grow, which could result in a long-term sideline.
The price is once again at a vital resistance, but a breakout was likely
Source: BTC/USDT on TradingView
The daily time frame preference for Bitcoin has been bullish. Prices again tested a crucial resistance near $30k. In particular, the $30.8k level served as resistance in mid-April. A move above this level seemed likely.
The trend was bullish in 2023, although that does not mean a bull run was underway. Above $30.8k – $31.5k, the next resistance levels to watch out for are $32.8k and $34.5k. The 100% Fibonacci extension level at $34.2k was a valid bullish target, especially if BTC can break past $30.8k.
The RSI was above 70 to indicate overbought conditions and the CMF was at +0.1 to show significant capital flow into the Bitcoin market. They showed that Bitcoin was likely to continue its upward trajectory.
Above the $30.8k resistance, there were no significant areas of opposition from the sellers until the $34k area. Hence, an upward move could send prices up quickly.
Bitcoin continues to pour out of the exchanges, indicating rising demand
Source: Sanitation
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The supply on exchanges has been steadily falling since the beginning of May. This showed an increased withdrawal of Bitcoin from exchanges. The SEC’s stance against Coinbase and Binance could have played a role in fueling withdrawals as investors sought to take their BTC into custody elsewhere.
The rising prices suggested that the strong buying pressure of the past ten days was also a factor. The balance of the alternating current fell sharply on June 19. Meanwhile, the consumed age also experienced a few spikes in the past week.
