Bitcoin (BTC), the largest cryptocurrency on the market, continues its unstoppable upward trend. After consolidating between $29,900 and $30,300 for a short period of time, BTC has reached a new yearly high, crossing the $31,000 mark it had not surpassed since June 2022.
At the time of writing, the leading cryptocurrency in the market is trading at $31,300, representing an increase of more than 4% in the last 24 hours.
This recent price increase is a positive development for Bitcoin and demonstrates its resilience and potential for continued growth and adoption in the cryptocurrency market. The consolidation period that preceded this new high indicates that investors were likely accumulating BTC in anticipation of a breakout.
Could Bitcoin Reach $35,000 Soon?
There is good news for Bitcoin bulls as the cryptocurrency broke the closest USD 31,000 resistance level and is aiming to reach USD 31,500. If Bitcoin can break through this final bear threshold, the road to $35,000 could be served on a silver platter to the bulls.
In addition, the recent news of Blackrock’s Bitcoin spot ETF and major Wall Street giants showing interest in investing in Bitcoin may further fuel investor sentiment and fuel Bitcoin’s bull run.
However, Bitcoin must maintain its current price level to prevent this price action from being just a short squeeze followed by a further pullback. If the current price level continues, it could provide a solid foundation for continued growth and upward momentum.
As the chart above indicates, Bitcoin’s ADX (Average Directional Index) is currently peaking upwards, indicating the strength of the current trend. The ADX is a technical indicator often used to quantify the strength of a trend in the financial markets.
The ADX calculation is based on a rolling average of price range expansion over a period of time. It measures the extent to which a market is trending, and it provides traders with a way to identify the strength of a trend and determine whether it is worth trading.
When the ADX rises, the trend is gaining momentum, while a falling ADX indicates that the trend is losing momentum. A high ADX reading suggests that a strong trend is present, while a low ADX reading suggests that the market is in a range-bound or choppy state.
Bitcoin’s ongoing uptrend shows no signs of slowing down, and the cryptocurrency is gaining momentum, worrying bears. However, the influx of new investors entering the BTC market may increase its volatility, which risks liquidating late long positions, which could hamper Bitcoin’s bullish movement.
Overall, Bitcoin’s recent performance is a trend to watch in the coming weeks and months, as it is likely to have a significant impact on the wider cryptocurrency market and potentially attract more attention from investors, regulators, and the public .
Featured image from iStock, chart from TradingView.com
