Bitcoin Breaking Out Of 7-Month Accumulation Channel: Expert Predicts Further Upside
Bitcoin is at a pivotal moment after surging past the $68,000 mark and setting a new local high, confirming its bullish uptrend.
Analysts and investors closely monitor the next steps, searching for signs of a continued rally or a potential retrace from higher supply levels. While the excitement is palpable, there is caution as traders prepare for possible resistance.
Top analyst Daan shared a technical analysis highlighting that Bitcoin has broken out of an accumulation channel, suppressing the price. According to Daan, this breakout above the $68,000 resistance level signals a potential for further upside as Bitcoin moves into uncharted territory.
The next few days will determine whether BTC can maintain its momentum or will face a healthy pullback from these higher levels. With euphoria clashing with fear of a correction, investors are keen to see whether Bitcoin can continue its upward trajectory or if the market will see a pause in the rally.
Bitcoin Break Out: New ATH Next?
The crypto market is optimistic, as Bitcoin and most altcoins have surged from yearly lows to yearly highs in just a few weeks.
Analysts are now speculating that this could be the start of something biga rally that could propel prices to new highs and deliver massive gains to investors. Despite the excitement, there is also a lingering fear of an impending correction.
Historically, Bitcoin has struggled to maintain momentum above supply near $70,000, often facing strong rejections that lead to sharp declines.
However, top crypto analyst and investor Daan recently shared a technical analysis on X, explaining why this recent breakout might differ. According to Daan, Bitcoin has finally broken out of a 7-month accumulation pattern that had kept prices down, signaling a significant shift in market dynamics.
Furthermore, BTC has managed to break well above the Daily 200 moving average (MA) and exponential moving average (EMA), key technical indicators that had previously caused resistance since the summer.
With the short-to-mid timeframe trend firmly up, Daan believes this bullish outlook may suggest that Bitcoin could avoid another rejection near $70,000. Instead, BTC might be gearing up for a powerful surge, with investors eyeing new all-time highs in the coming weeks.
BTC Technical Analysis
Since Monday, Bitcoin has tested a crucial supply zone following a strong 9% surge. The price is trading well above the Daily 200 moving average (MA) and exponential moving average (EMA), signaling strength and maintaining bullish momentum with no immediate signs of a retrace.
This indicates buyers remain in control for now, with a potential push to break above the psychological $70,000 level.
However, theres still a risk that Bitcoin could fail to break and hold the $70,000 mark, which is critical for bulls to maintain upward momentum. A rejection at this level could signal a shift in market sentiment, potentially leading to profit-taking and consolidation.
Historically, such moments of euphoria in the market often end with a discouraging move that cools down excitement, and a healthy retrace is possible.
Should BTC experience a pullback, its likely to find strong support at 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 up if the price corrects before resuming its bullish trajectory.
Featured image from Dall-E, chart from TradingView
Text source: NewsBTC
