In case you missed it, Bitcoin (BTC/USD) just broke above the $30,000 major psychological level after trading inside what looks like a pennant pattern on the daily time frame.
That’s the first time the crypto pair has reached the level since June 2022 and since the Terra/Luna and Three Arrows Capital drama rocked the crypto scene!
The technical breakout also came despite traders re-pricing further interest rate hikes from the Fed after Friday’s labor market data gave Powell and his team more room to tighten their policies.
Bitcoin (BTC/USD): Daily
Bitcoin (BTC/USD) Daily Chart by TradingView
But are we looking at a legit breakout?
The solid green candlesticks on the daily time frame support the breakout, and the 100 SMA widening its gap against the slower 200 SMA also back further bullish movesI’ll be looking at the $31,650 previous resistance zone for clues on the sustainability of the breakout.
Keep in mind that the Fed can still raise its interest rates in May; markets are still worried about global growth trajectories, and the crypto industry is still facing regulatory issues in the U.S.
If the concerns above lead to risk aversion and increased USD demand, then BTC/USD could at least pull back down to its broken consolidation levels.
But if the markets focus on start-of-quarter risk-taking, or if global banking and de-dollarization concerns boost BTC against USD, then BTC/USD could revisit higher inflection points like $32,000 or $35,500.
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