Bitcoin price has broken out from a six-month range consolidation, soaring 13.91% to the current price of $27,787.
BTC could breach the $29,292 resistance level before a run-off to the $36,172 resistance level.
A daily candlestick close below the $22,649 psychological support level could invalidate the bullish narrative.
Bitcoin price has broken out from a six-month range consolidation, in tandem with two momentum indicators as BTC soared by a significant margin. The latest breakout comes amid the recent banking crises that pumped liquidity into the crypto market, causing a surge in prices for most cryptocurrencies. With the fifth range currently in play, here is what to expect from the flagship crypto.
Bitcoin price on course for more gains
Bitcoin price is on course to record more gains for investors after breaking out from five six-month ranges, each with positive indications from the Relative Strength Index (RSI) and the Awesome Oscillator (AO).
Bitcoin price consolidated between January and June 2012 before a 247% breakout. In the same way, the king crypto broke out from a six-month-long consolidation between November 2016 and May 2017, soaring around 4200% to the zone above $15,000. There was another bullish move around November 2020 after a six-month consolidation, catapulting BTC almost 470% to the $44,700 range and a fourth one around October 2020 that saw the flagship crypto escape almost 770% northward.
With the fifth one currently in play, an increase in buying pressure from current levels could see Bitcoin price shatter past the immediate $29,292 resistance level. A decisive flip of this barrier into a support level would add credence to the bullish thesis.
In highly bullish cases, Bitcoin price could break past the $36,172 equilibrium to tag the next obstacle at the $46,589 level. Such a move would constitute a 67.80% increase from the current level.
On-chain data, as presented by IntoTheBlock, also supports the bullish case for Bitcoin price. This fundamental index identifies investors' average purchase price of a cryptocurrency versus its current price. Its statistical model analyses crypto addresses (wallets) that bought the asset at an average price above or below the current market price.
Based on the on-chain metric, Bitcoin price faces the next resistance level around the $28,606 and $33,399 price range. This was an important supplier congestion zone because 1.4 million addresses bought 543,250 BTC at an average price of $30,823 around this area.
A successful attempt to push Bitcoin price past the zone mentioned above would add credence to the bullish narrative, inspiring immense buying from the investor cohort who may wish to record more gains. The ensuing buying pressure would cause BTC to increase even further.
Industry pundits like @Balaji are also very optimistic about Bitcoin price soaring, to the extent that he is betting $1M that BTC will surpass the $1 million mark in less than 90 days.
Conversely, if investor appetite takes over, Bitcoin price could drop towards the $22,649 support level or, in dire cases, tag the $20,000 psychological level. Such a move would denote a 27% drop from current levels.
