With $28,000 now in sight, the recent rise of Bitcoin above a resistance level that dates back to August 2022 has increased the likelihood of a sustained rally.
The leading cryptocurrency, Bitcoin, broke above a significant barrier mark on Friday during Asian trading hours, continuing its upward trend. The resistance level from August 2022, which also saw modest increases last month, was broken, which has caused attention to turn to the subsequent technical barrier above $28,000.
“Bitcoin has now the possibility to ascend to the next technical milestone, which is at $28,000,” Markus Thielen, Head of Research and Strategy at Matrixport, a crypto financial services company, told CoinDesk.
Also, he pointed out that during larger price fluctuations, bitcoin has risen, responded, and retested from $4,000 point increments ($16k, $20k, and $24k), from which the current breakout is currently aiming for $28k.
The price of Bitcoin has increased from $19,000 to $26,000, hitting a 39-week high. Analysts predict that the price of Bitcoin will continue to rise despite the unwinding of leverage and the current $1.14 trillion market cap of all cryptocurrencies.
The movement of Bitcoin also appears to be correlated with rate-sensitive technology equities in addition to technical indicators. On March 16, the tech-heavy Nasdaq index on Wall Street increased 2.6%, validating a bullish pattern on the daily chart.
The recent increase in the price of Bitcoin is sure to rekindle discussion about the volatility and future of the digital currency. Yet now that a significant resistance level has been overcome, Bitcoin’s upward momentum seems to have at least stabilized for the weekend.
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