Bitcoin Bulls Aim Big After Recent Surge To $28K. Bitcoin price rallied above the $27,500 resistance. BTC is consolidating near $28,000 and might soon start a minor downside correction.
- Bitcoin gained pace above the $27,200 and $27,500 resistance levels.
- The price trades above $27,500 and the 100 hourly Simple moving average.
- A crucial bullish trend line is forming with support near $27,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- After a mild downside correction, the pair is signalling more gains above $28,000.
Bitcoin Price Rallies To $28K
The bitcoin price began a steady ascent after breaking over the $27,000 resistance zone. Bitcoin (BTC) accelerated its march toward breaking out of the $27,200 and $27,500 resistance levels.
The price even attempted to break beyond the $28,000 barrier after the significant upward surge. The price has reached a new high close to $28,087 and is currently consolidating its gains. It has made a solid upward move from the swing low of $26,692 to the high of $28,087, and it is currently trading at a level that is well over the 23.6% Fib retracement mark.
Bitcoin prices are trading higher than $27,500 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a crucial bullish trend line is forming, and it is providing support near $27,350. The trend line is close to the 50% Fib retracement level of the upward move that began at the swing low of $26,692 and ended at the high of $28,087.
Bitcoin U.S. Dollar Index on TradingView.com is the source.
A close approach to the $28,000 price level should meet buyers with stiff opposition on the upside. The level of $28,200 might represent the next significant barrier to overcome. If the price manages to close over the resistance level of $28,200, it may continue to rise. If the scenario plays out as described, the price may increase to the $28,800 resistance level. Should there be further rises, the price may be forced to move closer to the $29,500 mark.
Riding the Bitcoin Rollercoaster
Bitcoin has long been identified with high levels of volatility. Because its price has gone through spectacular highs and lows, it has become a popular playground for traders and investors. Many wonder whether the current increase to $28,000 is merely another rollercoaster ride or a hint of something more important because of how quickly it happened.
The Factors Behind the Surge
Institutional Investments
The growing interest from institutional investors is one of the primary factors contributing to Bitcoin’s recent price increase. Businesses with rising trust in Bitcoin’s potential in the long run, such as Tesla and Square, have begun to invest a portion of their financial reserves in the cryptocurrency.
Market Sentiment
The way people feel about something has a significant impact on the value of cryptocurrencies. A general sense of optimism, the release of positive news, and endorsements from influential persons can all lead to a quick increase in price. The current growth can be attributed, in part, to the bullish feeling prevalent in the market.
Limited Supply
Because the quantity of bitcoin will never exceed 21 million coins, it is considered a deflationary asset. Because of this, scarcity has always been one of the primary factors contributing to its value. Bitcoin is becoming an increasingly appealing option as more individuals become aware of the significance of taking precautions against inflation.
Macro-Economic Conditions
Many people are looking for alternate investments due to the increased economic instability caused by the COVID-19 epidemic. Bitcoin, frequently referred to as “digital gold,” has gained traction as a store of value in recent times due to the volatility of the financial market.
The Implications for the Crypto Market
Altcoin Attention
The rise in value of bitcoin typically attracts attention to the cryptocurrency market as a whole. Alternate cryptocurrencies, often known as altcoins, follow in Bitcoin’s footsteps. Because traders and investors are always looking for the next big thing, there has been a rise in interest in alternative cryptocurrencies.
Regulatory Scrutiny
Regulatory attention has increased in tandem with the rising value of bitcoin. Regulation of cryptocurrencies is currently receiving increased attention from governments across the globe. This could significantly impact the future of the cryptocurrency industry and the widespread adoption of cryptocurrencies.
Increased Awareness
The mainstream media’s attention has been captivated by the meteoric rise in the price of Bitcoin to $28,000. Because of this increased knowledge, more people may investigate cryptocurrencies and even enter the market.
The Future of Bitcoin
Volatility Ahead
Even while the recent increase is quite exciting, it is essential to remember that Bitcoin’s price will likely continue to be volatile. Traders must be always careful and always have a risk management strategy ready to go.
Institutional Adoption
It is expected that the current trend of institutional acceptance will continue. There is a possibility that additional businesses and financial institutions will follow Tesla’s example and include Bitcoin in their investment portfolios.
Mainstream Acceptance
The march for acceptance by the general public is still in progress for bitcoin. It may become a legal alternative to conventional currencies if more companies and individuals utilize it daily.
Are Dips Supported In BTC?
If Bitcoin fails to continue higher above the $28,000 resistance, there could be a downside correction. Immediate support on the downside is near the $27,750 level.
The next significant support is near the $27,350 and trend lines. A downside break and close below the $27,350 level might send the price toward $27,000. The following support sits at $26,750. Any more losses might call for a test of $26,200.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is directly above the 50 level.
Primary Support Levels – $27,750, followed by $27,350.
Primary Resistance Levels – $28,000, $28,200, and $28,800.
