The BTC price breakout from a monthly resistance hints at a significant rally in the near future; time to buy?
In today’s early trading hours, the Bitcoin price witnessed a notable 10.7% surge fueled by rumors surrounding the SEC’s approval of the iShares Spot Bitcoin ETF. This sudden inflow of buying pressure has propelled BTC price beyond a resistance line that had been suppressing upward movement for nearly 95 days. However, this bullish momentum is strong enough to underpin a sustained recovery.
Is Current Recovery Sustainable?
- A bullish breakout from the upper trendline sets the coin price for a 13.5% upswing
- Bitcoin fear and greed index at 47% indicates a neutral sentiment in the market
- The intraday trading volume in Bitcoin is $24 Billion, indicating a 373% gain.
Source-Tradingview
As the Spot Bitcoin ETF news was disseminated, the Bitcoin price leaped from $27,143 to $30,127, breaching a long-coming resistance trendline. This resistance had acted as a deterrent against bullish sentiment for the past three months, assisting sellers to prolong a correction trend.
However, the absence of official confirmation regarding the SEC’s decision has led to a failure to sustain the price above the $30,000 mark. As a result, the coin price reverted low and formed A long higher price rejection candle in the daily chart.
At the time of writing, the BTC price is trading at around $28,198, trying to maintain its position above the recently breached trendline. If it manages to hold this level, the price could very well continue to rise, potentially surging 13.5% to test the $32,000 region.
Can BTC Price Fall Back to $25000?
While the short-term outlook appears optimistic, traders should remain vigilant for any signs of reversal, given the speculative nature of the recent price surge. If the news-driven rally fails to keep the price above the broken resistance line, the BTC price could see a pullback, rendering the breakout a “bull trap.” Such an outcome would increase selling pressure and extend the ongoing correction phase. In this bearish scenario, the price could plummet to the psychological support level of $25,000.
