BITCOIN: The price level of $33,400 may potentially be reached.

21 mars 2023

Bitcoin's price has recently surged by 14% after breaking out from a six-month consolidation range. This occurred simultaneously with the rise of two momentum indicators. The banking crisis that triggered a surge in cryptocurrency liquidity, leading to a surge in most cryptocurrencies' prices, has prompted this recent breakout. Currently, the flagship crypto is in its fifth range, and investors are curious about what to expect from it.

Bitcoin's price has previously consolidated for six months before breaking out and soaring by a significant margin. In January-June 2012, Bitcoin's price consolidated before skyrocketing by 247%. Similarly, between November 2016 and May 2017, Bitcoin's price consolidated for six months before surging by 4,200% to reach above $15,000. After a six-month consolidation, there was another bullish move in November 2020, where BTC rose by almost 470% to the $44,700 range. In October 2020, the flagship crypto skyrocketed by almost 770% northward.

With the fifth consolidation range currently in play, an increase in buying pressure from the current levels could see Bitcoin's price rise past the immediate $29,292 resistance level. A decisive flip of this barrier into a support level would add credibility to the bullish thesis.

In highly bullish scenarios, Bitcoin's price could break past the $36,172 equilibrium to tag the next obstacle at the $46,589 level. Such a move would result in a 67.80% increase from the current level.

According to IntoTheBlock, on-chain data also supports the bullish thesis for Bitcoin's price. This fundamental index determines the average purchase price of a cryptocurrency by investors compared to its current price. Its statistical model examines crypto addresses (wallets) that purchased the asset at an average price higher or lower than the current market price.

Based on the on-chain metric, Bitcoin's price is expected to face the next resistance level in the $28,606 and $33,399 price range. This range is a significant supplier congestion zone, with 1.4 million addresses purchasing 543,250 BTC at an average price of $30,823 in that area.

If Bitcoin's price successfully breaks past the mentioned resistance zone, it would add credibility to the bullish narrative, inspiring immense buying from the investor cohort, who may wish to record more gains. The ensuing buying pressure would cause BTC to increase even further.