Bitcoin surged to new yearly highs on July 6, experiencing a strong rebound from key support levels.
According to data from TradingView, the price of BTC surpassed the upper limit of its recent trading range.
Earlier, analysts had anticipated a further decline in Bitcoin’s price, with a potential drop to $28,000, which could have presented a classic “buy the dip” opportunity.
However, with the recent upward momentum, Michaël van de Poppe, CEO of trading firm Eight, expressed optimism, stating that the current situation looks promising and the price of Bitcoin could gradually continue to rise. He highlighted that breaking and flipping the $30.8K level would result in a swift upward momentum, while a retest of $30.3K would present an opportunity for long positions.
The price surge occurred several hours after Larry Fink, CEO of BlackRock, the largest global asset manager, referred to Bitcoin as an “international asset” and mentioned several advantages of the cryptocurrency during a live interview. It is worth noting that BlackRock recently resubmitted its application to launch the first Bitcoin spot-price exchange-traded fund (ETF) in the United States.
However, financial commentator Tedtalksmacro exercised caution, warning that short-term market direction could still be influenced by derivatives traders.
On a more positive note, analytics account PlanC expressed hope that the current phase would favor the bulls. They highlighted the significance of Bitcoin’s 2-year exponential moving average (EMA), currently situated at $28,500. According to their analysis, when Bitcoin manages to stay above the 2-Year EMA, it is considered a bullish sign. They further pointed out that previous cycle lows occurred when BTC was 45% to 55% below the 2-year EMA, a situation that has already transpired.
Accompanying their analysis was a chart illustrating the 2-Year EMA Multiplier, which depicts Bitcoin’s price behavior in relation to its trend lines in previous years.
This latest surge in Bitcoin’s price and the ongoing analysis and observations from various experts indicate an interesting and potentially bullish phase for the cryptocurrency.
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