- Bitcoin has exploded in the past 24 hours, jumping 10% to hit USD $56K.
- This is Bitcoin’s highest price since November 2021, when it reached its previous all-time high.
- Analysts believe that there are several key resistance levels for BTC to break before it can etch a new ATH.
- Meanwhile, some traders believe this rally may be short-lived as BTC needs a period of consolidation before it can truly kick off the next bull market.
Bitcoin has burst out the gates to kick off the week, flying past the USD ~53K (AUD $81K) barrier it had been flirting with for the past fortnight. At this point, everyone knows what’s driving the push upward – the SEC’s approval of Bitcoin ETFs and the impending BTC halving event. But the question remains: Just how far will this rally go?
All-Time Highs or Correction? Analysts Split
BTC had been in a holding pattern after finally surging through the USD $50K psychological barrier to start the month. However, it appears the resistance has been well and truly broken, with the price of Bitcoin up 10% in the past 24 hours. For now, the movement seems to be settling just over the $56K mark (AUD $85K), but analysts believe there could be more movement on the horizon.
Founder of Fairlead Strategies, Katie Stockton, identified two key points that Bitcoin must meet before we can start thinking about all-time highs. She says that USD $56.4K (AUD $86.2k) and $64.9K (AUD $99.2k) are two technical resistances that BTC needs to beat. But the outlook, according to her statement, looks good.
Bitcoin has positive long-term momentum per our trend-following indicators, and there are no overbought sell signals on the monthly chart.
Katie StocktonCrypto trader/analyst, Rekt Capital, echoed these sentiments.
The current BTC price is the highest it has been for nearly 2 and a half years, after its previous ATH in November 2021 of USD $69.6K (AUD $105K). A new ATH would be yet another landmark moment for the industry, after media speculation following 2022’s collapse that BTC and crypto were on the way out. The market’s resilience following catastrophic events like UST and FTX’s collapse is incredibly bullish for the future of the cryptosphere.
While optimism runs rampant, we may still be waiting a while for a new ATH. According to trader Michael van de Poppe, the rally may fall short at the $58K (AUD $88.8K) resistance level. He suggests that BTC will drop to about $40K (AUD $61K) after the halving takes place, before rebuilding momentum in the back end of 2024. This would be in line with previous halvings, where the ATH wasn’t hit until ~10-18 months following the event.
The difference in opinions, even when using technical data, demonstrates that trading and analysis isn’t an exact science. It’s a great reminder to take on as much information as possible before making investment decisions – and to never rely on one source.
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