Bitcoin (BTC) Price Needs To Confirm These Levels For A Breakout

Ambar Warrick
June 1, 2022 Updated July 16, 2022
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Bitcoin (BTC) recently rose back above $30,000, inciting some hope among traders that the token may be in recovery mode.

But analysts are skeptical over the nature of the recovery, with many cautioning that it may be a “dead cat bounce.”

BTC is currently trading at $31,500, up nearly 7% over the past three days. While it has recovered to back above $30,000, popular Twitter analyst @CryptoDonAlt opines that it needs to confirm at least two more levels for a breakout.

Until then, sentiment over the token is likely to remain bearish, considering it has more than halved from a record high hit last year.

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BTC needs to first confirm $31,800, then $34,000

CryptoDonAlt said in a Twitter post that the token has struggled to confirm $31,800, and is now “bearishly retesting” the same area. While the token did trade as high as $32,000 in the past few days, it has almost immediately slumped back below the level.

After clearing $31,800, BTC will face $34,000 as its next resistance point before a breakout. But clearing this, it could set the token up for further gains.

Kinda have to lean bearish here, at least until $34k is reclaimed and closed above. If we do reclaim it though, I’m down to full send it.

-CryptoDonAlt

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Bitcoin tracks relief rally in stocks

A bulk of BTC’s recent gains have been driven by a strong recovery in stock markets. For instance, the Nasdaq 100- BTC’s closest parallel in stock markets rose 7% in the past five days, with a similar performance from the token.

But U.S. stock futures indicate that this rally may be running out of steam, with Wall Street set for a largely flat open today.

As such, BTC’s recovery rally may cool down similarly, keeping the token in a bearish trend for the near-term.

The factors that contributed to stock and crypto market weakness are still in play. Rising inflation and interest rates have largely eroded appetite for risk-driven assets this year.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.