Bitcoin (BTC) has experienced a significant breakthrough, surpassing the $28,000 level for the first time in three weeks.
Following a recent drop below $25,000, the cryptocurrency’s resurgence has gained momentum, leading to substantial gains and a notable short squeeze in the market.
BTC/USD rallied over 5% within 24 hours, reaching a high of $28,150 on Tuesday afternoon. The surge in Bitcoin’s price marked the largest short squeeze witnessed in June, amplifying positive sentiment.
Additionally, Bitcoin’s dominance index climbed above 50%, a level not seen in over two years, indicating the cryptocurrency’s growing influence within the market.
Crypto analytics platform Santiment observed a surge in trading volume and token circulation as Bitcoin approached the key resistance level.
The platform highlighted the potential for continued growth, attributing the recent 3-week high to these factors.
Furthermore, Santiment previously shared data demonstrating how whales, holding between 1,000 to 10,000 BTC, have accumulated an impressive 131,600 BTC worth over $3.5 billion since April.
Bitcoin’s recent gains were accompanied by significant news, such as the filing of a spot Bitcoin ETF by BlackRock and rumors of a similar move by Fidelity Investments.
As a result, bullish sentiment has emerged, with experts setting their sights on the $30,000 level. However, the intraday high zone could pose a crucial obstacle.
Despite trading around $27,950 at 4:00 pm ET on Tuesday, Bitcoin needs to break through these levels to maintain the positive momentum and validate further upside potential.
Experienced trader Peter Brandt emphasized the increasing burden of proof for Bitcoin bears. He noted on Twitter that the retesting of the underlying head and shoulders (H&S) pattern has found substantial support, and a potential falling wedge pattern is nearing completion on the daily line chart. These observations suggest a positive outlook for Bitcoin’s price in the near term.
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.
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