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Bitcoin has broken through key levels. This is a great chance for the bull market to continue

This week can easily be described as a key one in terms of further Bitcoin development. The number one cryptocurrency overcame several important levels and, more importantly, managed to stay above them.

Main chart

For about 2-3 weeks, I have been starting off my day with basically the identical chart. Same levels were marked, same ideas followed. But this week a change has come as Bitcoin overcame the declining trend and also created a higher high. And what is even better, Bitcoin managed to stay above these levels even.

In the current situation, it would be best if the price would stay below the $ 52,760 level on a 1D chart (ie not falling below the last high). This would be the best possible scenario for us. However, adhering to the declining trendline would be enough. That is because unless the price goes under the trendline, every move can be perceived as bullish, and every price decrease as a mere correction.

When we look at Bitcoin, we can notice a beautiful growing channel. The price creates higher lows and higher highs. All this points us to the conclusion that Bitcoin looks very bullish.

Bitcoin on a daily chart Figure 1: Bitcoin on a 1D chart

What must not happen?

To give me an idea and a conclusion. As I see it, we are still in the bull market and there is a high probability that a new ATH will come this year, hopefully reaching 100K. On-chain data, technical and fundamental analysis looks very promising too. Bitcoin is “on the roll”. But what can go wrong?

There is one factor that comes to my mind that could reverse the current situation. For Bitcoin to grow, there must not be panic or fear on classic markets (stocks, indices). Let the previous 3 weeks serve as an example as Bitcoin has had 3 very strong bearish fundamentals during that time and its price fell accordingly. But, and this is interesting, as soon as no negative fundamentals appeared in the last 7 days, Bitcoin grew.

If this bull market is to continue and Bitcoin is to go to a new maximum, then we need the classic markets to be stabilized. Unfortunately, every fear and panic sale will also affect Bitcoin and may consequently slow it down. However, if the classic markets manage to keep it nice and calm for at least another 2-3 months, then Bitcoin can easily reach 100,000 USD .

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...


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