Bitcoin Price Breaks Above $30K For First Time Since June 2022
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.
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?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.