Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market structure turned firmly into a bullish advantage amid rising demand.
- The $30,000 area was a hugely important region going back to January 2021.
Bitcoin price action [BTC] from earlier this year showed that Bitcoin could rise to $34,000 later this year. Trading volume and market sentiment could hamper progress, but the tide is already turning.
Read Bitcoin [BTC] Price Forecast 2023-24
The US Federal Reserve’s decision to suspend rate hikes was well received in traditional markets. In addition, Bitcoin spot ETF filings boosted sentiment, although the SEC’s lawsuits against some of the market’s biggest players gave investors some cause for concern.
Are we heading for another Bitcoin bull run?
Source: BTC/USDT on TradingView
During the 2020/2021 bull run, BTC prices rose by more than 500%. A 13% increase from $30,000 to $34,000 cannot be called a bull run, but it would certainly establish the $16,000 area as a long-term bottom.
Before we get ahead of ourselves, it should be noted that trading volume has been subpar since April. The $30,000 area is significant psychological and technical resistance.
But if the recent strength continues, such an upward move would be possible. The break in the daily timeframe structure occurred on June 20. Bitcoin exploded higher on June 21 to break past another lower high at $28.5k.
This created a strong bullish structure and a higher low in the coming weeks would indicate an uptrend. This higher low could happen at the bullish breaker block in the $27k-$28k area after a pullback. In the north, the 100% Fibonacci extension level (yellow) at $34.2k was the next target.
The Fibonacci extension levels from the early 2023 rally rose just past the 61.8% extension level at $30.7k for a decline. The current rally retested the $25k region before moving higher. In the north, $32.8k, $34.5k and $37.8k are the important resistance levels to watch out for.
The increase in MVRV allowed sales pressure to increase rapidly
Source: Sanitation
The 90-day MVRV ratio climbed to April highs and bulls are said to be concerned that profit-taking could hinder the progress BTC has made. However, this can also provide a buying opportunity in the event of a pullback. Dormant circulation also hit June-to-date highs, meaning sales pressure could follow.
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The average coin age has increased since late May to suggest network-wide accumulation. Combined with the price action, the overall picture showed bullish strength.
A pullback and another move back above $30,000 in the next two weeks would be a hopeful development for BTC bulls.
