Bitcoin (BTC) reached $29,000 on June 21, experiencing a surge in buying activity that boosted market sentiment. This rise in price comes as several announcements regarding new Bitcoin-focused institutional investment products were made, fueling continued interest from buyers.
The recent price action has caused analysts to reconsider their previous concerns about the overall strength of the market. Rekt Capital, a popular trader and analyst, reacted to the breakout by stating, “Fantastic BTC breakout beyond the multi-month downtrend.” He also expressed that it is very unlikely for this breakout to end up as an upside wick like in previous months.
In a previous statement, Rekt Capital had cautioned that the weekly candle close was necessary to confirm a substantial trend change. He now adds that a BTC Weekly Candle Close beyond the multi-month downtrend would confirm the breakout and a successful retest into the downtrend would offer full confirmation. The retest area is estimated to be around $26,800.
Another trader, Crypto Tony, believes that Bitcoin could hit his upside target earlier than anticipated. He reasoned that as long as the support zone at $25,000 is not lost, there is no bearish control yet. He saw the bulls stepping in as a cue to go long on Bitcoin.
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However, some traders, such as Daan Crypto Trades and Michaël van de Poppe, decided to close their long positions at the $29,000 mark. Despite this caution, Van de Poppe stated that BTC/USD is now on its way to reaching $38,000 or higher.
Glassnode, an on-chain analytics firm, highlighted the significance of the short-term holder (STH) cost basis as a support level. The STH cost basis at $26,400 acted as a strong line in the sand, with Bitcoin rebounding strongly after placing STHs in unrealized loss territory. Glassnode emphasized that a baseline at $26,550 is crucial in determining market trends.
The 200-week moving average, another important support line during bear markets, is currently located near the mid-$26,000 range. This adds further support to the upward trend.
While these analyses provide insights into the current market conditions, it’s important to note that this article does not contain investment advice or recommendations. Investing and trading always involve risks, and readers should conduct their own research before making any decisions.
In conclusion, Bitcoin’s recent surge to $29,000 has brought about a renewed sense of optimism in the market. Analysts are reevaluating their concerns and considering the potential for further upside. Support levels, such as the STH cost basis and the 200-week moving average, are proving to be strong indicators of market trends. However, caution is still advised, and investors should exercise their own judgement and conduct thorough research before making any investment decisions.
