Bitcoin Storms Past $38,000 Once More, Anticipating Breakout To New Annual Peak

Ronaldo Marquez

Last Updated: June 11, 2024 2:42 pm

3 mins read

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Bitcoin (BTC) has again demonstrated its bullish momentum by surging above the $38,000 mark. Breaking free from the recent trading range between $36,500 and $37,500, BTC currently trades at $38,100, slightly below its yearly high of $38,400 achieved on Friday, November 24. However, this is just one of the many milestones BTC has achieved during its ongoing bullish resurgence.

Bitcoin Achieves New 52-Week Closing Record

According to crypto trading firm The Birb Nest, Bitcoin has set a new 52-week closing record by a small margin, holding above $32,000 for four consecutive weeks, demonstrating the continued strength of the uptrend.

Per the firm’s analysis, the observed performance aligns with the principles of Elliott Wave Theory and signifies the presence of the third wave within the ongoing bull market.

Notably, of the five waves outlined in the theory, the third impulse wave is a visually captivating and crucial element of the overall pattern.

Following the consolidation phase of the second wave that Bitcoin experienced between August and October, as seen on the 1-day chart of BTC above, the emergence of the third wave is characterized by a breakout that drives price action in line with the prevailing trend.

In particular, this wave is known for its extended nature, which often exceeds the length of the first wave, which began at the beginning of January 2023 for BTC.

The third wave exhibits a substantial extension relative to the length of the initial wave, typically reaching the 161.8% Fibonacci level. In simpler terms, the third wave can be interpreted as a 161.8% Fibonacci extension of the first wave.

Solid Support Levels Reinforce Positive Outlook For BTC

According to The Birb Nest, key technical indicators further support Bitcoin’s market momentum. The 200-week moving average (MA) at $29,130 and the 50-week MA at $27,450 serve as solid support levels, reinforcing the positive outlook for the cryptocurrency.

Additionally, Bitcoin’s correlation coefficient has risen to 0.75, indicating an increased synchronization with the performance of the S&P 500. This correlation can be viewed as a positive sign, particularly as the S&P 500 and Nasdaq enter their ‘Best Months’ strategy, which historically has been associated with market gains.

Furthermore, the firm believes that anticipation surrounding the upcoming Bitcoin halving event and the potential approval of a Bitcoin spot exchange-traded fund (ETF) is fueling investor interest. These factors hint at the potential for further market upturns and provide an optimistic outlook for Bitcoin’s future.

It remains to be seen if the current bullish momentum will be sustained and if BTC can consolidate above $38,000 and target the $40,000 level yet to be reached in 2023.

Featured image from Shutterstock, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

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