Bitcoin Price Triggered Breakout: Bulls Eyeing For All-Time High?

• Trading volume has surged by 200% in the past 4 days.
• Bitcoin price advanced the 20-day EMA and seems to be sustaining.

Bitcoin price has performed positively since 2023, rising and reaching new all-time highs. In mid-March, the Bitcoin price reached an all-time high and a short-term profit booking was experienced. At the beginning of April, the BTC price attempted to hold the $72,000 hurdle, but sellers were strong enough to drag down the price.

The chart structure displays that the Bitcoin price has formed a falling wedge pattern over a daily time frame. Recently, the BTC price has triggered a breakout with a rise in trading volume and exceeded the key moving average.

According to the technical indicators, the RSI 57 is heading toward the overbought zone. Based on the Bollinger Band, the digital asset price has extended to the upper line and has been held for the past few days.

Bitcoin vs. Gold vs. Savings: Which Investment is Better?

Investment of $100 monthly in Bitcoin and Gold since 2014; What about its return? Here is the description. This graph displays that the savings have remained the same. Gold has shown slow and steady gains, but Bitcoin has performed extraordinarily. 

$100 per month in Bitcoin vs Gold pic.twitter.com/ADtB48EwlY

— borovik (@3orovik) May 16, 2024

If you do savings for $100 per month, the asset will remain the same, but the inflation rate may affect the value of the savings. 

Suppose you have invested $100 monthly since 2014; the investment would have increased by around 35000% until now. In 2014, the BTC price was $200, and the current price is more than $66K. The drawback of Bitcoin is that it is very volatile, and its price fluctuates a lot; the investment would be zero if the cryptocurrency collapsed.

Investing in gold is safer than Bitcoin but the risk is also there. Gold is less volatile and has surged by only 100% since 2014, which is far less than Bitcoin. According to the graph, gold has shown a slow and steady gain since 2014. 

Bitcoin Price Formed a Falling Wedge Pattern

On a daily time frame, the Bitcoin price has formed a falling wedge pattern and triggered a breakout. Suppose the BTC price is sustained over the falling wedge pattern, then the buyers may become confident. If this buying momentum is supported by the trading volume, then investors have an eye for an all-time high. 

Alternatively, if the digital asset price drops back to the wedge pattern, most buyers can be trapped and face their stop loss (SL). Due to the fake breakout, the Bitcoin price may show weakness. 

At press time, Bitcoin price traded at $66,323 with an intraday gain of 1.65%. The market capitalization is $1.30 Trillion, and according to the market cap, BTC ranks 1st in the cryptocurrency market. The 24-hour trading volume is $30.73 Billion, down by 25%.

Volume Surged by 300% in 4 Days

According to the graphs. The trading volume has decreased since April, and the price has also shown weakness. However, the trading volume has increased by 300% in the past 4 days, which has impacted the BTC price positively.

Conclusion

While Bitcoin has shown extraordinary performance in comparison to savings and gold, it’s important to note the volatility and risks associated with investing in cryptocurrencies. On the other hand, gold has demonstrated slower but steadier gains with lower volatility.

The recent surge in trading volume by 300% in the past 4 days has positively impacted the price of Bitcoin, indicating a renewed interest from buyers.

Technical Levels

Resistance: $67,000 & $71,300

Support: $60,700 & $52,500

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.