Bitcoin price is once again pushing higher and breaking boundaries, this time above the key psychological level of $30K per coin. It marks the first time BTCUSD trading above the level since June 2022.
Is this more confirmation of a bullish trend blossoming? Or is this a fake out above resistance before a bigger collapse and possible recession?
Bitcoin Price Moves Back Above $30K Psychological Resistance
Back in mid-2021 after Bitcoin price was rejected from $65K, it first found support at $30K and bounced back to $68K to put in a second, slightly higher high and long term peak.
After the second rejection, BTCUSD fell into a bear market and ultimately lost $30K, making it the most important line in the sand for bulls to reclaim since below $20K.
The top cryptocurrency by market cap spent the last several weeks gearing up for today’s move, which could continue for the near term
With Bitcoin price back above $30K, support turned resistance has been breached. The onus is now on bulls to hold the resistance level and flip it back to support.
Bitcoin price has breached back above $30K | BTCUSD on TradingView.com
Why The Resistance Break Matters For Bullish Continuation
BTCUSD is currently trading above $30K for the first time since June 2022, when the entire crypto market crashed due to post-LUNA collapse contagion. The fallout and resulting domino effect led to widespread problems in the crypto industry.
Historically, once Bitcoin price reclaims former support turned resistance, a new bull run begins. There is a technical reason for this, however.
According to Elliott Wave Principle, corrections form in three waves against the primary trend labeled as ABC. The A-wave finds local support and attempts another high. Depending on if the pattern is a zig-zag, or flat, the B-wave either forms a higher or lower high.
After the B-wave back in the primary trend direction completes, the C-wave reverses course and cuts right through the former support where an abundance of stop losses and positions are located, resulting in a violent move down. Sound familiar?
In the past, each time Bitcoin price reclaimed the key level where the A-wave ended, the bear market bottom was officially in, and a new bull market formed. Is that what’s ahead now that BTC has retaken $30K?
From a technical perspective, reclaiming the A-wave support is the first step in establishing a new bullish trend in #Bitcoin pic.twitter.com/6q6thjS5iI
— Tony "The Bull" Severino, CMT (@tonythebullBTC) March 29, 2023