Bitcoin is still breaking resistances, and Thursday has seen the alpha cryptocurrency pierce through $36,000 like butter. How much higher can it go?
Bitcoin and crypto lead financial markets
Just as bitcoin and the crypto sector were the first to slide into the bear market of 2022, it looks like crypto might lead the stock market and other sectors out of it. Where the S&P 500 is up around 16% since the end of 2022, bitcoin is up 126% over the same period, to say nothing of a handful of the altcoins, which have put on 1000% +.
Bitcoin above long-term trend
Source: Trading View
Bitcoin is above its very long term trend line which goes back to March 2020, and should it hold here the price will have a good foundational support from which to go higher. The price is also now just above the 0.382 fibonacci.
Shorter time frame
Source: Trading View
Zooming into the shorter term 4-hour time frame the bitcoin price can be seen to have poked through the top of the rising channel. If it is able to hold above then this would be extremely bullish once again, given that a rising channel is normally bearish.
Oversold territory - traders beware
However, traders beware. Relative Strength Indicators (RSI) for bitcoin have entered into oversold territory. The Stochastic RSI momentum indicators are also topping out. This would signify a pull back. How deep this may eventually be, only the market knows.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
