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Bitcoin announces its bull market is well and truly on after making a new high for the year at $35,000. Is there more to come from this latest push skywards?
Bitcoin fires through resistance
With the stock market still continuing to falter as the 10-year yield briefly hit above 5% again, bitcoin did its own thing, and crashed through the major resistance at $32,000 which had held it back since May of 2022.
The price rose as high as $35,200 (depending on the exchange) very early on Tuesday and has settled back just under $34,000 at time of going to press.
Source: Trading View
A potential further bullish move
up channel that bitcoin has been following since mid-June of last year was broken to the upside and the price has settled here, either to cement what would be an incredibly bullish piercing of the top of this channel, or to come back down into the channel once more.
Momentum appears to be in charge still, so an onward surge to $40,000 may not be out of the question. However, what is plain is that the 200-week moving average has been left well behind at around $28,000, and a possible head and shoulders was completely nullified when bitcoin crashed through $32,000.
Caution is advised
A measured move out of the channel takes bitcoin to around $41,400, so the stars do appear to be aligning for a potential move higher. When bitcoin hit its lows late last year many were calling for the price to go even lower. By the same measure those investing now should be cautious as there will be a pull back at some point. Dollar cost averaging (DCA) might be employed as a more risk averse strategy.
