Bitcoin Breaks 7-Month Accumulation; Experts See Further Gains

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Bitcoin finds itself at a critical juncture after surpassing the $68,000 threshold and reaching a new local peak, reinforcing its bullish trend.

Analysts and investors are carefully watching the forthcoming developments, seeking indications of a sustained rally or a possible pullback from elevated supply levels. Despite the excitement, there is a sense of caution as traders brace for potential resistance.

Renowned analyst Daan has shared a technical analysis pointing out that Bitcoin has emerged from an accumulation channel that had previously restrained its price. As per Daan, this breakout past the $68,000 resistance indicates the possibility of further gains as Bitcoin ventures into unfamiliar territory.

The upcoming days will reveal if BTC can sustain its momentum or if it will undergo a healthy correction from these higher levels. With euphoria mingling with the fear of a downturn, investors are eager to observe whether Bitcoin can maintain its upward movement or if the market will experience a stall in its advance.

Bitcoin Break Out: New ATH Next?

The cryptocurrency market is optimistic, as Bitcoin and the majority of altcoins have risen from yearly lows to highs in a matter of weeks.

Analysts are now conjecturing that this might be the inception of something significant—a rally that could elevate prices to unprecedented heights and yield substantial returns for investors. Despite the thrill, there remains an undercurrent of concern about a possible upcoming correction.

Historically, Bitcoin has had difficulties maintaining momentum above the $70,000 level, frequently encountering robust rejections resulting in sharp downturns.

Nonetheless, top crypto analyst and investor Daan recently discussed a technical analysis on X, illustrating why this breakout might be different. According to Daan, Bitcoin has finally broken free from a 7-month accumulation phase that had kept its price subdued, indicating a significant change in market dynamics.

Bitcoin breaking 7-month accumulation pattern | Source: Daan on X

Moreover, BTC has successfully surpassed the Daily 200 moving average (MA) and exponential moving average (EMA), which are crucial technical indicators that have historically acted as resistance since summer.

With the trend in the short-to-mid term strongly upward, Daan suggests that this bullish sentiment may imply that Bitcoin could sidestep another rejection near $70,000. Instead, BTC could be preparing for an impressive surge, with investors anticipating new all-time highs in the following weeks.

BTC Technical Analysis

Since Monday, Bitcoin has approached a vital supply zone following a robust 9% increase. The price remains well above the Daily 200 moving average (MA) and exponential moving average (EMA), indicating strength and sustaining bullish momentum, with no immediate signs of a pullback.

This suggests that buyers are currently in control, with the potential to push through the psychologically significant $70,000 barrier.

BTC testing crucial supply below $70K | Source: BTCUSDT chart on TradingView

However, there’s still a chance that Bitcoin could struggle to break and sustain the $70,000 level, which is essential for bulls to keep their upward momentum. A rejection at this threshold could indicate a change in market sentiment, potentially triggering profit-taking and consolidation.

Historically, such euphoric phases in the market often culminate in a disappointing decline that tempers enthusiasm, and a healthy retracement may be on the horizon.

If BTC encounters a pullback, it’s likely to find solid support at the daily 200 MA around $63,304. This level has served as a crucial support indicator during past upward trends. It could form a strong base for the next upward movement if the price corrects before continuing its bullish path.

Featured image from Dall-E, chart from TradingView