BTC may rally to $34k due to a technical breakout.

  • Bitcoin has broken out to $29k after bulls established $26,190 as a crucial support zone.
  • If bulls break to year-to-date (YTD) highs, the next direct resistance according to the Fibonacci model could be at the -50.0% retracement of $34,280.
  • On Monday morning, Bitcoin traded at around $29,030 after spot ETF news sparked by BlackRock’s filing aided bulls’ upside momentum.

On Tuesday, Bitcoin (BTC) broke above a key downtrend line as it rose past the $28k level. By reaching the $29k area, BTC pushed well beyond the recent hurdle and now has a key support line of $26,190.

Analysts view Bitcoin’s break of a multi-month downtrend as a bullish move that puts the top crypto asset on the verge of retesting the $30k level. Can it exceed its year-to-date highs above $31k?

The technical picture based on the Fibonacci model suggests it could surpass its YTD highs.

Could Bitcoin’s price reach $34k next?

Although Bitcoin is not yet in a bull market, the potential for a burst seems likely as a confluence of positive factors align. However, regulatory headwinds, including the SEC’s lawsuits against Binance and Coinbase, continue to hover over the market.

Nevertheless, the resiliency shown over the past weeks and renewed optimism as major financial institutions embrace crypto have bulls poised, and a break to $30k is very much on the horizon. Could it reach $34k next?

According to Glassnode, an on-chain and financial metrics data provider, this robust support is at the -61.8% golden ratio Fibonacci retracement. If the price continues to rise and establishes a clear upward trend, it’s probable that bulls will retest the bears’ resolve around $34,280.

Glassnode pointed out on Wednesday that this would be the next direct resistance zone, putting this possible supply reload zone at the -50% Fibonacci retracement level.

Currently, BTC/USD is trading at $29,030, about 8% higher in the past 24 hours and almost 12% higher over the past week.