At a time of excitement around artificial intelligence-related stocks, Bitcoin BTC/USD has made a spectacular recovery under the market’s radar, pushing past the $30,000 level and aiming to revisit the highs achieved earlier in 2023.
The king of cryptocurrencies has recently slashed six out of the last seven days in the green and made a notable 13% jump from Sunday through Thursday.
The catalyst behind Bitcoin’s price action: the emergence of fresh spot Bitcoin ETF applications from major Wall Street investment firms. Blackrock Inc. BRK led the way, followed by WisdomTree and Invesco, all putting pressure on the SEC to consider approving these applications.
Read also: BlackRock Moves Forward With Bitcoin ETF, Confirms Coinbase As Custodian In Form S-1 Registration
Bitcoin’s value has almost doubled since its November lows, while its rally from the March 2023 lows has surpassed 50%, indicating a growing momentum for the crypto.
Investors are now wondering, how much higher can Bitcoin climb? Will there be further room for gains, or have we reached a tipping point at these levels?
Let’s take a look at the technical picture.
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BTC/USD Price Chart: Eyeing 2023 Highs, Overbought RSI Appears
BTC/USD broke the psychological level of $30,000 this week and is now eyeing its April 2023 highs at $31,043, showcasing significant, recent resistance breakouts.
The cryptocurrency successfully surpassed the 100-day moving average at $27,730 and breached the 23.6% Fibonacci retracement level of the range between the 2023 lows and 2021 highs.
Key Bitcoin Levels To Watch
Should the BTC/USD bulls manage to surpass the 2023 highs, they could potentially gather enough momentum to challenge and potentially break the June 2022 highs at $32,442.
The next crucial resistance level to watch for will be the 38.2% Fibonacci retracement at $35,840.
Although the relative strength index (RSI) is signaling somewhat overbought conditions at 71, it is not at the extreme levels the crypto displayed in the past, and hence its appearance is unlikely to prevent the continued bullish surge.
Bitcoin has previously surged even higher during periods of overbought RSI, with the momentum indicator reaching 89 in January 2023 and 78 at the all-time highs in November 2021.
Further rapid advances may raise some warnings given the speed of the rally, which may prompt some profit-taking behavior to resurface.
If the bulls are unable to break through the April highs, it might lead to disappointment and possibly a pullback in the cryptocurrency. In this case, the critical support level to watch is the 23.6% Fibonacci level at $28,041.
This level is significant because it was the price at which the cryptocurrency traded just before the announcement of Blackrock’s Bitcoin ETF.
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