Bulls may not have long to wait before BTC price action sees its next leg up, traders suggest, with $35,500 in focus for a breakout.
Bitcoin (BTC) took a stab at key resistance around $36,000 on Wednesday as anticipation built around a breakout.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The largest cryptocurrency rebounded from lower levels overnight, calming those concerned that important $33,000 support would be violated.
With the area around $36,000 providing a significant resistance band, however, low volumes and a general “compression” structure kept bulls firmly in check on the day.BTC/USD buy and sell levels (Binance) as of July 7. Source: Material Indicators/Twitter
For popular trader Michaël van de Poppe, Bitcoin needed a clean breakout at $35,500 to cement continuation of bullish action. That said, the potential upside limit under such circumstances could be much higher.
“If $35,500 breaks, I think we are going to get a run towards even $39,000,” he explained in his latest YouTube update.
A retest of recent highs just below $37,000 should then enter, with success opening up the path to higher levels.
“Really, the higher timeframe level is between $40,600 to $42,000,” he continued.
“If that cracks, I think we’re going to have a retest around the $50,000 level and momentum starts to kick back into the markets very soon.”
The top 50 cryptocurrencies by market capitalization saw daily gains of up to 13%, while other tokens remained flat.
“What are my expectations on the markets in general? I think we’ve bottomed out,” van de Poppe concluded.
“I think we’re going to continue moving to the upside, and I think in the coming months until Bitcoin gets to the all-time high, altcoins are going to outperform Bitcoin heavily.”
Fellow trader and analyst Rekt Capital joined in predicting an end to the middling price movements, which have characterized Bitcoin in recent days.
“A volatile move for BTC is coming in the next few days,” he forecast, referencing the popular Wyckoff method as a hint that any potential move would be up, not down.