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After two months of slow sideways and downward price movement, bitcoin has suddenly broken the trend, giving control back to the bulls.
Many investors had fled
Following on from the mass of negativity caused by the Securities and Exchange Commission’s attack on the crypto industry culminating in suing the two biggest crypto exchanges, Binance and Coinbase, most investors had fled the scene, possibly thinking that crypto might die.
As mentioned in a Crypto Daily article published only two days previously, it is times like these that the intelligent and experienced traders are waiting for. In addition, the technicals were looking quite positive.
Technicals looking good
Bitcoin had been traversing in a downward sloping channel since mid-April (a bullish pattern in itself), which could even be taken as a bull flag that had gone on for rather a long time.
Had bitcoin fallen out of the bottom of the channel instead, then this would have been seen as extremely bearish. However, bitcoin did the most logical thing and broke out strongly to the upside.
It is currently playing with $29,000, which it did hit earlier today. There is the possibility that the price could storm on to the major resistance at $30,300, but it could be expected to get rejected here, at least for the time being.
Can the move be sustained?
It might be wondered if bitcoin will be able to sustain a sizable rally on the scale of the 4 and a half month one it made from the beginning of the year. There is still much fear and negativity permeating the crypto space, and given the SEC actions, liquidity is very thin.
However, bitcoin has its halving cycle that will be drawing the king of the crypto assets higher. This is due to take place in April 2024, so still a lot of ups and downs before the bull run can start in earnest.
Nothing comes close
All does appear to be on track though. Bitcoin is still the scarcest and hardest form of money on the planet, and it is only a matter of time before traditional institutions take off the blinkers and do something about protecting their portfolios with bitcoin - Gensler and his SEC permitting of course.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.