Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Finally, Bitcoin [BTC] inflicted a bullish breakout above its 2-week range formation. Following a weekend price pump amidst a tentative US debt ceiling deal, BTC secured the $26.2k support and crossed $27k.
The uptrend momentum was extended into the last week of May as the king coin climbed above the $26k – $27.5k range on 29 May.
At press time, the BTC’s price was $28k, up 0.32% in the past 24 hours, extending green across most altcoins.
Source: Coin360
However, the move to $28k has previously faced heavy headwinds as long-term BTC holders sought to lock profits at this level.
BTC inflicts a bullish breakout
Source: BTC/USDT on TradingView
Between 11 – 28 May, BTC formed a short-term range of $26k – $27.5k. The pullback of the bullish breakout from the range on 29 May retested the range high at $27.5k.
After the pullback retest, the confirmed uptrend sets BTC bulls to watch out for key resistance levels ahead.
One of the resistance levels is $28.5k, a key price ceiling/range high during late March/early April price consolidation. A retest of $29k or $30k could be likely if BTC clears the $28.5k roadblock.
But a breach of the range high and the 20-EMA ($27.5k) could shove back BTC to the range, derailing bulls’ efforts. Such a retracement could ease at the mid-range of $26.8 or range low at $26k.
The RSI hit the overbought territory while the CMF retraced to the zero mark, denoting an increased buying pressure but easing capital inflows to BTC.
Shorts discouraged
Source: Coinglass
Out of the $1.56 million liquidated positions, $1.5 million were short positions in the 4-hour timeframe. While this paints a short-term bullish outlook, it remains to be seen if BTC will close above $28k at the end of May and extend the uptrend momentum into June.
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Recent Glassnode data showed that Bitcoin hit new records regarding new addresses with non-zero holdings or above 0.01 coins.
Notably, addresses holding 0.01 coins hit a new ATH (all-time high) of 12,080,129. Similarly, non-zero addresses hit an ATH of 47 million, with just a few months to 2024 halving.
Source: Glassnode