Bitcoin has endured a volatile start to its run this year, but it’s heading for another upbeat year thanks to a rally in the cryptocurrency’s price since the start of the year.
Bitcoin has been range-bound for a few days, hovering around the $35,000 mark. Today, it has dropped to $34,900. The bitcoin value has been volatile since the end of October, when it briefly broke above $7,000, but the volatility has been short-lived. Most of the time, the price of bitcoin (BTC) is between $4,000 and $6,000.
Bitcoin (BTC) tackled key resistance around $36,000 on Wednesday, while expectations of a breakout grew.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingView
BTC breakout means first stop: $39,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD made several attempts to break through the $35,000 level on Wednesday, but failed.
The largest cryptocurrency recovered from lower levels overnight, reassuring those who feared that the important support level of $33,000 would be breached.
However, with the $36,000 area as a key resistance band, low volume and overall compression structure held back the bulls throughout the day.
BTC/USD (Binance) Buy and sell stands from 7. July. Source: Material Guide/Twitter
According to noted trader Michael van de Poppe, bitcoin needs a clear breakout of the $35,500 level to remain bullish. Yet the potential growth ceiling could be much higher in such circumstances.
If $35,500 is profitable, I think we have a boost to $39,000, he explained in his latest YouTube update.
A retest of recent highs just below $37,000 should then follow, the success of which will pave the way for higher levels.
In fact, the highest time level is between $40,600 and $42,000, he continued.
If it splits, I think we will have a retest around the $50,000 level and momentum will return to the markets very quickly.
Altcoin is poised for a price premium over bitcoin
Altcoins, meanwhile, continued their moderate upward movement, with Ether (ETH) gaining significantly against BTC. In particular, the ETH/BTC pair is now at its highest level in a month.