Bitcoin is gradually going up, what could send the price above $30,000?
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The question in the title has addressed to Dominik Podlaski, technical analyst at Bitget - let's discover his view.
Dominik Podlaski (Bitget): Bitcoin is currently facing one of its major resistance levels, and a significant catalyst is needed to trigger a breakout. This impulse could come in the form of either direct liquidity injection or positive news that motivates investors to pour more funds into this asset.
It is not easy to break this level, but a breakout would be a strong confirmation of Bitcoin's strength
DP: The resistance level that Bitcoin is currently facing has been a strong support level in the past, particularly during the major pivots of January 2021 and summer 2021. On both occasions, the price increased by over 100% following the breakthrough. Therefore, it is not easy to break this level, but a breakout would be a strong confirmation of Bitcoin's strength.
DP: One way a rally could occur is through a direct inflow of funds into the market. For example, the FED could inject more money into the market, leading to positive movement in stocks and cryptocurrencies.
DP: Similarly, positive news about the global economy could encourage investors to enter the market more aggressively, leading to a potential breakout of resistance levels. Especially among strong assets, in which Bitcoin is right now included.
DP: News specific to the cryptocurrency market, such as the emergence of new technology or a major narrative surrounding an influx of funds, could also cause a breach in resistance levels. Although to a lesser degree than other possible reasons for having another rally.
DP: Finally, recent weaknesses in the banking sector could lead some individuals to store their value in Bitcoin rather than banks, potentially leading to a rally. However, if the banking sector continues to deteriorate, this could cause exactly the opposite effect - an outflow of funds from the cryptocurrency market.
DP: Overall, a strong catalyst is needed to trigger a breakout of the resistance level that Bitcoin is currently facing. Whether it comes in the form of liquidity injection, positive news, or weakness in the banking sector, a breakout would signal Bitcoin's strength and potential for further growth.
