Closely watched crypto analysts say Bitcoin (BTC) is on the verge of breaking a key resistance level that could trigger a big move higher.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform participation that if Bitcoin convincingly breaches $52,000, traders could start to feel FOMO (fear of missing out) and fuel a continuation of the bullish momentum.
“Bitcoin waits for no one! Bitcoin has seen a significant rally towards the $52,000 level, breaking through key resistance areas.
The $52,000 level is crucial and historically serves as strong resistance on the weekly chart. A breach could fuel further buying pressure, potentially leading to a FOMO scenario. BTC’s current trajectory depends on its ability to surpass and sustain levels above $52,000.”
The analysts participation that Bitcoin’s next resistance line in an uptrend is $58,000.
“BTC has left the building. Or rather: it has really taken off! Next we see $58,000 before $65,000. ATHs here we come! The big BTC bull continues.”
Looking at their chart, the analysts suggest that Bitcoin has completed a bullish ABC correction wave.
The Elliott Wave theory is a technical analysis approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bullish asset often undergoes an ABC correction before launching a five-wave move to the upside.
Finally, the analysts participation that while market corrections may occur in the future, historical price action shows that corrections alone do not always negate a Bitcoin uptrend.
“Remember BTC’s ‘huge pullback’ in January 2024? Try to see if you can recognize it here. BTC has now almost surpassed the level of the BTC ETF launch. Big rallies are accompanied by big pullbacks.
That’s just the name of the game! Embrace it or don’t put your money in crypto. But this does not mean that the entire trend has shifted. This rally in BTC and crypto is far from over.”
Bitcoin is trading at $52,309 at the time of writing, up more than 1% in the past 24 hours.
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Featured image: Shutterstock/Yurchanka Siarhei