Bitcoin (BTC) broke above $30,000 for the first time since June on Monday night and managed to hold that level throughout Tuesday's trading.
This week's rally has boosted optimism about Bitcoin's recent strength and resilience and interest from new investors, and some analysts agree that BTC is on a solid uptrend.
"We Believe Bitcoin Is On The Rise Again"
“We continue to believe that the Bitcoin price is rising again,” as evidenced by a chart pattern that shows a breakout followed the consolidation period, Oppenheimer's Ari Wald said.
“Notably, after breaking above key resistance in March, the price has consolidated sideways for several weeks. This consolidation allows the extremes to recede and constitutes the next leg of progress.”
Katie Stockton of Fairlead Strategies also supported this view, saying that Bitcoin "has exited the consolidation phase after a bottom break in March." He described the price action as "in favor of the bull over a medium-term time frame".
He added that in the long run, Bitcoin still has its challenges. However, analysts said that even if this is a new bull market, there will be no rocket rally from here.
"This is certainly a positive development, but it is too early to declare victory," said senior technical analyst Julius de Kempenaer.
“Bitcoin support and resistance levels are notorious for being very fluid and hard. Considering the range of resistance, $30,000 is nothing more than a nice round number, which is definitely an attraction for a lot of people but less important from a pure technical point of view.”
In the continuation of his statement, de Kempenaer said that the resistance area for Bitcoin remains between $ 28,500 and $ 32,000. Looking forward, the analyst said, if BTC can hold above the lower limit of this range, the path for Bitcoin will be "clear for a more meaningful rally targeting $45,000 to $47,500."
*Not investment advice.
