Bitcoin (BTC) reached $29,000 on June 21 as a result of large-scale purchases, leading to a renewed feeling of optimism.
Analyst: $29,000 becoming fakeout “very unlikely”
Data from Cointelegraph Markets Pro and TradingView indicated that the BTC/USD pair on Bitstamp had reached $29,014, its highest level since May 7.
The pair experienced ongoing buyer enthusiasm during the night, which followed numerous announcements concerning new institutional investment items concentrating on Bitcoin.
Analysts, who had previously been worried about the overall strength of the market, now have cause to reconsider their outlook to a more moderate degree.
“Rekt Capital, a popular trader and analyst, expressed enthusiasm about the fantastic BTC breakout beyond the multi-month downtrend.”
Rekt Capital had warned the day before that the weekly candle close was essential to verify a significant shift in trend, even though the uptrend was already underway.
“A Weekly Candle Close of Bitcoin (BTC) beyond the multi-month downtrend would constitute a great confirmation of a breakout. For even more assurance, a successful retest of BTC dipping into the downtrend would offer full confirmation of the breakout,” he further stated.
Crypto Tony, a fellow trader, went on to say that Bitcoin could reach his upside target “sooner than expected.”
“If we had not broken through the support level for Bitcoin at $25,000,” he argued, “we would not yet have any bearish control.”
Others were more conservative in their approach, with both Daan Crypto Trades and Michaël van de Poppe, founder and CEO of trading firm Eight, closing their long positions at the $29,000 level.
Van de Poppe asserted that BTC/USD was now heading towards $38,000 or more.
Short-term holder support proves itself
Glassnode, an on-chain analytics firm, used the chance to emphasize the importance of the cost basis of short-term holders.
New research suggests that the “sideways boredom” of Bitcoin prices may extend for up to 18 months.
At $26,400, the STH cost basis was now a formidable barrier, which BTC/USD recovered from strongly after pushing STHs into unrealized loss territory.
Glassnode tweeted, alluding to prior research reported by Cointelegraph, that “26,550 remains a noteworthy baseline in assessing market trend.”
The mid-$26,000 zone is currently also close to the 200-week moving average, which is another key support line in bear markets.
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