• Bitcoin’s price broke the critical $28k level, pushing past a multi-month downtrend.
• Analysts predict that BTC could reach as high as $30k in the near future.
• If bulls break to YTD highs, the next direct resistance could be at the -50.0% retracement of $34,280.
Breakout Above Critical Level
Bitcoin (BTC) broke above a key downtrend line as it rose past the $28k level on Tuesday. In reaching the $29k area, BTC pushed well beyond the recent hurdle and now has a key support line of $26,190. Analysts have pointed Bitcoin’s break of a multi-month downtrend as a bullish move that puts the top crypto asset on the verge of retesting the $30k level.
Fibonacci Model Suggests Possible Rally
The technical picture based on the Fibonacci model suggests it could pump beyond its YTD highs. If bulls break to YTD highs, Glassnode says that next direct resistance zone is at -50% Fibonacci retracement level ($34,280). Veteran trader Peter Brandt believes if this breakout shifts “burden of proof” to bears and pushes BTC beyond major resistance areas then further gains are likely with an all-time high possible in 2021 or 2022.
Positive Factors Aligning
A confluence of positive factors are aligning which make further gains possible for Bitcoin’s price. Although there are regulatory headwinds such as SEC’s lawsuits against Binance and Coinbase, optimism from major financial institutions embracing crypto has fueled renewed enthusiasm among investors and traders alike for higher prices going forward.
Resilience Despite Negative Sentiment
The resilience shown by Bitcoin despite negative sentiment surrounding regulatory crackdowns has been impressive and may lead to further gains even if there are some short term dips due to profit taking along the way.
Conclusion
Bitcoin is experiencing renewed bullish momentum after breaking out above key levels which could potentially push it towards its all-time highs in 2021 or 2022 if enough buyers remain in control of market sentiment following this initial burst higher in price