The current Bitcoin bull run does not seem to take a pause. In fact, the entire crypto market has caught up momentum with Bitcoin. It certainly looks like the buyers recovering from the mid-May downfall in a phased manner is healthy for the market.
Bitcoin currently trading at levels around $47,000 and maintaining well above the technical resistance turned support is an indication that the impulsive move from the buyers is real and here to stay. Moreover, the short-squeeze that took place at the $30,000 support level proved the presence of bulls getting back into the market.
But most importantly, the question lies – how far are the buyers heading? The markets being unpredictable, especially the Bitcoin market, it is speculative to believe that every bull run ends up with a new all-time high. And given the uncertainties that still revolve around Bitcoin, the probability of the market skyrocketing like the previous bull pushes remains on a lower side.
That being said, some altcoins, including Cardano, Terra, and Solana, have shot up significantly recently, heading closer to the ATHs. Though Bitcoin sometimes turns to be a laggard relative to few cryptos, it does pick up pace in subsequent trading sessions.
The $30,000 Support Finally Reacts
The latest massive push north in BTC took place at the beginning of 2020. The market doubled in value by moving from levels of $30,000 to $60,000. And the price has not made a higher high ever since. In fact, the psychological support levels around $40,000 failed to hold as the sellers gained momentum every step of their way down.
However, the initial starting point from which the market rose to the ATH maintained grounds, as the buyers showed their presence for the first time since the crash in mid-May.
The bullish reaction coming through strongly from the liquidity area confirmed the existence of the predominant uptrend. But the fact remained that the bears were compelling on the way down.
With the presence of buyers from the higher timeframe and sellers from the shorter timeframe, the prices began to consolidate and move sideways. Though there flashed bullish events in Bitcoin in recent months, the market rejected to head higher.
The ranging market was rather interesting to observe, considering the sequence of equal lows and equal highs with momentum.
Unfolding the Range
The first reaction from the liquidity area instantly took the price to the recent resistance level at $40,000. But the sellers being equally powerful, took the market right back down to the liquidity zone. In fact, the sellers even attempted to make a lower low from the previous low. And yet again, the buyers stood up and raised the market to an equal higher as the previous one.
Finally, on the third attempt from the bulls at the support area, they made a higher high – buying it all the way up to $48,000 in an uptrend fashion. With the strength increasing on the buyers’ side, the $40,000 resistance remained unaffected. The market, from $30,000 headed to $42,000 in one impulsive move, retraced to the nearest S&R at $37,500 and continued to breach the subsequent hurdles at higher levels.
On the higher timeframe, the market is currently hovering around $46,500 for over a couple of days, which is at a resistance level. But no instant reaction from the level is an indication the buyers are trying to fight the sellers stronger by not letting the bears take charge.
Bitcoin Price Chart on the Daily Timeframe | Source: BTC/USDT
Buyers Dominate the Short-term Trend
The market shown below is the price chart of BTC on a smaller timeframe to focus on the current uptrend.
The recent bullish trend began from $30,000 and is now 60% higher at $46,500. Like a typical uptrend, the price made it to the current market level in a sequence of higher highs and higher lows.
In a total of two pushes, the second push is as robust as the first one – indicating that the buyers are holding ground at the moment. But a retracement for the second push remains a blur as the impulsive move is still in play. Given the price is at a resistance level on a higher timeframe, the pullback could come in very soon before the buyers make their next higher high sequence.
Bitcoin Price Chart on the 4-Hour Timeframe | Source: BTC/USDT
Conclusion: BTC Uptrend to Continue But…
Looking at a much bigger picture, the BTC market is gradually inching to the all-time highs at $65,000. However, based on price action fundamentals, it is certain that the prices are going to halt longer and possibly reverse in direction when the market reaches the final resistance at $57,500 – because this supply level dominated to breach below the major support ($40,000) on its previous attempt. Only based on the momentum analysis from the supply zone could we gauge and predict the distance the sellers would carry forward on their subsequent attempt to drag the market south until the big bulls step up.
Stay tuned and watch the KuCoin Blog for more interesting and valuable educational content. All the best!
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