Over the past week, Bitcoin has seen a substantial price surge of approximately 15%. A closer look at the daily chart reveals that Bitcoin embarked on a notable upward trajectory after breaching a critical resistance level at $27,000, where the 100-day and 200-day moving averages intersected. This impressive rally continued and eventually broke through the $32,000 resistance level, which aligns with Bitcoin's peak in 2023. Market participants then pushed the price toward the significant resistance zone at $35,000, characterized by the 0.5 and 0.618 Fibonacci levels, establishing new yearly highs.
The ability of buyers to maintain this pivotal level could set the stage for a favorable medium-term trend, with higher resistance levels as potential targets. Conversely, a pullback or rejection could lead Bitcoin into a consolidation phase characterized by increased market volatility. On the 4-hour chart, Bitcoin's price underwent an extended consolidation period, oscillating between $25,000 and $32,000. Strong upward momentum eventually propelled the price beyond the upper boundary of the range, reaching a new yearly high at $35,000.
Nonetheless, the substantial supply of Bitcoin presents a significant hurdle at the $35,000 level, potentially temporarily hindering the upward trend and triggering a correction phase. Should this scenario unfold, the next support levels for Bitcoin correspond to the 0.5 and 0.618 Fibonacci retracement levels.
In the event that buyers manage to overpower sellers, an unexpected breakout could result in a significant price surge. Regardless of the outcome, close monitoring of price action in the coming days is imperative, as the market may experience heightened volatility. Bitcoin has exhibited an overall upward trajectory since the start of 2023, recently achieving a new yearly high of $34,000 after a consolidation phase in the range of $25,000 to $31,000, fostering optimism among market participants.
An essential indicator to observe is the NUPL (Net Unrealized Profit and Loss) indicator, which gauges the proportion of investors currently in a profitable position. The NUPL indicator has recently displayed noteworthy movements. Following a substantial uptrend, it is now approaching the 0.5 level, identified as the "Conviction Denial Phase" (in orange), signifying that a higher number of investors are currently enjoying profitable returns. This reflects a prevailing bullish sentiment in the market, although it's worth noting that the realization of these profits may introduce short-term volatility to the market.
