Bitcoin price has stabilized its technical aspect above $30,000, giving bulls ample time to plan the next targeted attack on the resistance between $31,000 and $32,000. With BTC making numerous attempts to break this resistance, such a move will likely open the door to gains eyeing $35,000 and $38,000.
The largest cryptocurrency is trading at $30,760 toward the end of the Asian session on Monday. Since the recovery started in the wake of June’s drop beneath $25,000, Bitcoin price has generally sustained its position above $30,000.
However, it has become increasingly difficult to push steady price movements above $31,000, let alone the upper resistance range around $32,000.
Despite the snarl-up across the board, analysts believe Bitcoin price is in a position that may allow it to rally, closing the distance to $38,000 as opposed to sliding to $25,000.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator reinforces the bullish grip on BTC.
Moreover, Bitcoin’s position above all the applied moving averages, including the 50-day EMA, the 100-day EMA, and the 200-day EMA, shows that a bullish breakout is the most likely outcome.
As investors prepare for the anticipated move to $35,000 and $38,000, they must keenly watch BTC’s reaction to the immediate resistance at $31,000. It would be prudent to hold onto the buy orders and only consider activating with the price flipping above the short-term hurdle.
Some conservative traders may want to wait until Bitcoin price steps above the subsequent hurdle at $32,000, which would be followed by a spike in trading volume and increased investor interest.
On the other hand, the Money Flow Index (MFI), which recently pulled back from the oversold region, reveals that Bitcoin price may first drop to $30,000, and if push comes to shove, $28,000, where it would sweep through fresh liquidity to support an extended breakout to $38,000.
Popular on-chain analyst Willy Woo has affirmed his bullish stance on Bitcoin, but this time with a massive forecast of $310,000 per BTC. However, Woo told his millions of followers on Twitter that there’s a caveat.
In his opinion, eight institutions must be comfortable with dedicating up to 5% of their assets under management (AUM) to the largest crypto.
Some of these firms include Blackrock with $9,090 billion AUM, Fidelity with $4,240 billion AUM, JP Morgan with $3,300 AUM, Morgan Stanley with $3,131 billion AUM, and Goldman Sachs with $2,672 AUM among others.
According to Woo, if all these eight firms channel 5% of their AUM into Bitcoin, the price of the coin could jump to range between $128,000 and $398,000. However, he warned that “it would really depend on whether they deploy in a bearish or bullish phase of the market.”
Woo’s remarks come in the wake of filings by investment giants BlackRock and Fidelity for a Bitcoin-spot exchange-traded fund (ETF). These applications, however, have been allegedly deemed insufficient by the U.S. Securities and Exchange Commission (SEC).
Market participants believe Blackrock has at least a 50% chance of getting the approval, which is expected to increase investor confidence in a market characterized by extreme volatility.
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