Bitcoin Primed for Next Leg

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  • Bitcoin has been fighting to hold its prior resistance for more than two weeks and finally looks like it wants to go higher
  • A jump to $32,400 is the next area bulls will be aiming for
  • A Bitcoin ETF tailwind could help it get there

Despite some crazy wicks on both sides, Bitcoin has been holding firm in the $30,500+ region for a couple of weeks and finally looks like it wants to go higher. With the fundamental narrative around it improving thanks to multiple Bitcoin ETF applications, the chances of an upward move look strong, with the ultimate target of $46,000-$47,000 not unthinkable in the right circumstances.

Bitcoin Holding Strong

As we can see, Bitcoin has survived some major scares and finds itself sitting near the top of the band of resistance that it last faced in April:


This weekly chart illustrates the importance of this level and shows what Bitcoin needs to do to continue its 2023 rally:

bitcoin 2

Given that Bitcoin is rising into a headwind of regulatory action, of which there is almost certainly more to come, there is every reason to believe that Bitcoin will fail to breach this $32,500 level, especially given its importance in the wider context of Bitcoin’s situation. However, sentiment is suddenly shifting back in Bitcoin’s favor, with the multiple Bitcoin ETFs filed recently by major players in the traditional finance world potentially being the catalyst that pushes it further, perhaps even past this level.

If that were to happen we could see the $46,000-$47,000 level we discussed in February coming into play and acting as the final boss for the bear market:

bitcoin 3

This level of resistance is crucial to Bitcoin establishing a bull market again, and so it would mark a natural point at which the current bear market rally, if indeed it is one, peters out.

Don’t Look Down…

Of course there is the other side of the argument to consider: what if it doesn’t flip the current level? That would result in the second half of 2023 being a steady decline down to a key point of support, with two areas clearly obvious as possible stopping points:

bitcoin 4

Hopefully for holders it won’t come to that, but those still on the sidelines from the most recent move will be praying that Bitcoin revisits these levels before the next bull run proper begins.