Bitcoin broke out above $36k to record a 24-hour high of $36,589 on Tuesday evening for the first time since June 20, in a much-welcomed end-month move that some crypto analysts say is a positive sign of an extended bull run in July.
BTCUSD Chart By TradingView
For the past seven days, Bitcoin has mostly been trapped in the $30k-35k volatile range, with $34,000 severally playing a crucial role as both a resistance and support level. At the time of press, Bitcoin has retraced slightly to $34,730, still a 2.3% gain on the week.
Multiple analysts see the break out as a significant development for the next bitcoin price action and general direction of the crypto market, with primary concerns on whether the bull run will continue or whether it’s the onset of a bear market.
“Final Bull Run Is Coming, Have a Plan”
According to crypto analyst and trader Rekt Capital, bitcoin’s multiple tests at $34,500 as a support level could mean that it is gearing up for further upward movement.
“Great price-strength stability at a key weekly support level for #BTC. This is now the 7th week in a row that has been able to reaffirm this~$34500 level as support.”
Crypto trader and investor ‘CrediBULL Crypto’ expressed sentiments that Bitcoin is now entering its 5th and final legendary leg of the bull run.
“If we can break 35-38k I’m looking for a move to 4-55k. If we can get to 55k I’ll look to hedge short. I know if we manage to get there many will be euphoric-calling for new ATH when in reality that region is the most likely place to see a mid-term rejection. Have a plan.”
Additionally, the fact that bitcoin broke $35,000 is a good sign for the market, according to technical analyst Michael van de Poppe.
“#Bitcoin clearly broke $35,000. Good news! Now I’d like to see it hold as support in order to continue moving to $38,000. Preferably even without a retest and just continuation towards those next levels. Overall-> good signals on the markets.”
Is Technical Analysis Sufficient?
However, holding the support does not guarantee that bitcoin is bullish but rather shows that there lacks enough momentum from the bulls, meaning that buying pressure is low.
Other analysts have previously said that bitcoin needs a solid catalyst to break out from the current stagnant pattern to keep up the hopes of a continued bull market. Failure to this, Bitcoin’s sideways trading indicates that the market might be handed over to the bears.
Despite what analysts say on both sides, Bitcoin has performed pretty well for almost a year now, since its bullish onset in June 2020. The top cryptocurrency has also played a significant role in the last year in pushing the crypto market past a market cap of over $1 trillion, as a result of increased adoption and speculative trading.
In the meantime, the short-term BTC price action is bound to be influenced by the upcoming mining difficulty adjustment, due to mining farms’ shutdown in China.