With the new rally, the next psychological level is $90,000.
Nansen’s Sondergaard pointed to $87,000 as the next level to watch, followed by the psychological $90,000 mark and then roughly $92,000. Meanwhile, Jasper De Maere, OTC Trader at Wintermute, also sees a $90,000 test as possible.
The latest breakout came despite last week’s turbulent macro and political pressures, which included the failure of the Clarity Act to advance and a Federal Reserve rate increase accompanied by hawkish commentary.
Bitcoin also reclaimed its 50-week moving average, a longer-term trend line that some traders use as a signal for their strategies. Wintermute’s De Maere said this measure of average price acted as resistance during previous bear markets.
Breaking through that trend might have provided traders with some confirmation of a positive trading signal, De Maere noted.
“We, like many others, would read this reclaim as confirmation that the June low holds.”
However, traders are cautiously optimistic.
Chris Sullivan, co-portfolio manager at Hyperion Decimus, said he views the move as the beginning of a new bullish cycle, though he expects a significant pullback after the rally runs its course.
“This should be the first primary wave/rally of the new bull market,” he said, while cautioning that “we’re going to see a large correction once this rally exhausts itself.”
