Cryptocurrency News

Bitcoin ETF impulse fuels ‘fantastic’ $29K BTC price breakout

Bitcoin (BTC) hit $29,000 on June 21 as largescale buying fueled a fresh sentiment boost.

e7f8b24c e5b4 40e4 9d26 7656df94334a
BTC/USD 1-hour chart. Source: TradingView

Analyst: $29,000 becoming fakeout “very unlikely”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $29,014 on Bitstamp — its highest since May 7.

The pair enjoyed continued buyer interest overnight, this coming on the back of multiple announcements concerning new Bitcoin-focused institutional investment products.

For analysts, who were previously concerned about overall market strength, the latest action was cause for a modest rethink.

“Fantastic BTC breakout beyond the multi-month downtrend,” popular trader and analyst Rekt Capital reacted.

“Very unlikely this will end up as an upside wick like in previous months.”

6041297e 8b0c 4ac1 b836 1c7091c6ec9d
BTC/USD annotated chart. Source: Rekt Capital/Twitter

The day prior, with upside already in motion, Rekt Capital had nonetheless cautioned that the weekly candle close was necessary in order to confirm a substantial trend change.

“A BTC Weekly Candle Close beyond the multi-month downtrend would be a great breakout confirmation. That said, a $BTC dip into the downtrend for a successful retest would offer full confirmation of breakout,” he now added.

“The retest area is ~$26800.”

Fellow trader Crypto Tony meanwhile continued that Bitcoin could hit his upside target “earlier than anticipated.“

“As i said, if we did not lose the support zone on Bitcoin at $25,000, then there is no bearish control just yet,” he reasoned.

“Soon as we saw the bulls step in, that was our cue to long. Plan and Execute.”

Others were more conservative, with both Daan Crypto Trades and Michaël van de Poppe, founder and CEO of trading firm Eight, revealing closed long positions at the $29,000 mark.

Van de Poppe had nonetheless stated that BTC/USD was now on its way to $38,000 or higher.

Short-term holder support proves itself

Regarding support levels, on-chain analytics firm Glassnode took the opportunity to underscore the significance of the short-term holder (STH) cost basis.

Related: Bitcoin price ‘sideways boredom’ may last 18 months — New research

At $26,400, the STH cost basis was now a formidable line in the sand, which BTC/USD rebounding strongly after placing STHs in unrealized loss territory.

“26,550 remains a significant baseline in determining market trend,” Glassnode tweeted, referring to previous research covered by Cointelegraph.

“The recent deviation below the STH-CB was not decisive, culminating in a reclamation of the prevailing uptrend.”

957ce03d b169 46b9 b9d0 63aac5ed95e2
Bitcoin short-term holder data annotated chart. Source: Glassnode/Twitter

The 200-week moving average, another key bear market support line, currently also lies near the mid-$26,000 zone.

d8274fa1 5db1 48d1 b3fd 79ef3a20022c
BTC/USD 1-day chart with 200-week MA. Source: TradingView

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.