Finally! Bitcoin breached its $45,000 level, after breaking through a series of resistance levels.
Since the fall in May, Bitcoin price traded within a vast range between $30,000 and $42,000. As visible in the chart above, the crypto bounced between the highs and lows, while maintaining a mid-level at $36,500.
As per data collected earlier this year, $42,000 has been a crucial range. In January 2021, Bitcoin hit its first peak at $42,000, after which it underwent a period of brief correction to re-test the $42k peak before undergoing minimal correction to $30,000. However, as the price gained strength at $30,000, the market rallied the digital asset to a new high at $64,000.
We could see a similar breakout take place in the BTC market currently. If the market could sustain this rally, BTC could become range-bound at $49,000 and $52,000. However, this would be possible only if the price holds above $42,000. In case of a price reversal, BTC could drop to $36,500 which has previously proved to be a strong support.
At the time of press, Bitcoin was trading at $44,947 and the remaining crypto market was also marching higher. Ethereum has been leading this round of surge again as it witnessed an almost 27% rally in the past 2 days. Meanwhile, other alts were also noting a strong upward trends. This sudden rally has moved the market sentiment towards greed.
It can be seen that until last month, which was a few days ago, the market was still in ‘Extreme Fear’ level, however, as the price started to build higher, the sentiment has now reached ‘Greed’ and was gaining momentum.