Bitcoin (BTC) is up nearly 10% this week, breaking through the trendline and 50-day simple moving average that characterize the two-month downtrend.
According to FxPro Senior Market Analyst Alex Kuptsikevich, the so-called trendline breakout has opened the door for Bitcoin to target $30,400.
“For technical analysis, this is an important bullish signal. The move confirms the break of the downtrend that has been going on for the past two months,” Kapzykevich said in an email.
“The next target for the bulls is the April and May highs of $29,400 to $30,400,” Kapchikevich added.
Market mood turned bullish this week with a wave of Bitcoin ETF applications from BlackRock, WisdomTree and Invesco.
A breakout of the downtrend line on the daily chart indicates that the pullback from the April 14 high of $31,000 has come full circle and the broader bullish trend has resumed.
It should be noted that this pullback died out near $25,200 when former resistance turned to support during the US banking crisis in March.
The $25,200 defense and subsequent breakout signifies a positive resolution of a technical analysis pattern called “throwback” and suggests room for a rally to $37,000.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Bitcoin Trendline Breakout Suggests Continued Rally to $30.4K: Analyst