Bitcoin is trading at $30,000 today, up more than $5,000 in around a week since retesting 25,000 support.
More important than the psychological level itself is the fact the push above $30,000 has turned momentum on monthly price charts bullish for the first time since August 2021. In addition, price is back above a dynamic technical resistance level that has prevented a bull run for several months. With that out of the way, crypto could soar.
Bitcoin Above $30,000 Triggers Bullish Crossover
As some analysts predicted, Bitcoin is indeed following stocks with a potential bull market breakout. The last several days of upside have resulted in a revisit to above $30,000. Price action is now attempting to establish support above the key level.
The more than 6% intraday increase in BTCUSD has triggered a potential bullish crossover on the LMACD. The crossover is the first green tick on the LMACD since it turned red in August 2021.
A bullish crossover occurs when the LMACD line crosses the signal line from below. However, the crossover requires a monthly close to confirm, and several monthly closes for a full confidence signal.
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Bollinger Band Signal Confluence Could Target $50,000 Next
Technical analysts often look for a confluence of signals. For example, a morning star Japanese candlestick reversal pattern is more noteworthy when at support and the RSI is oversold.
The chart above shows that not only is Bitcoin flirting with $30,000 resistance, it is also at the monthly Bollinger Band basis line. And all this is happening with the aforementioned bullish crossover of the monthly LMACD.
With BTCUSD above the monthly “mid-BB”, the next logical target would be the upper Bollinger Band. This is currently located above $50,000 per BTC. Historically, after crossing bullish and making it over the median, Bitcoin ultimately tagged the upper hand in the months that followed. Is this time going to be different? Or is the next stop $50,000 per coin?
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