Bitcoin (BTC) Has Broken a Multi-Year Resistance, but Won’t Reach $38k Until This Happens

Bitcoin has finally broken through a major multi-year resistance level, leading analysts like Moustache to turn bullish on its short-term outlook. However, BTC likely needs to hold support at a key level before extending its gains up to $38,000.

Bitcoin Breaks Major Resistance

As Moustache points out, Bitcoin recently surged above $33,800, decisively breaking a short-term resistance zone between $31,000 and $25,000 where it had been rangebound since March. It is also breaking the price level for the first time since May 2022.

“Why is no one talking about the fact that BTC has broken through a MULTI-YEAR RESISTANCE? The time of accumulation is over. To all bears: You had long enough to buy cheap. If BTC manages to hold 33.8k, we’ll see $38,000 in no time,” tweeted Moustache.

Breaking out of this trading range is very positive technically for Bitcoin, as it shows a renewed appetite for risk among investors. According to Moustache, this breakout marks the end of an extended period of accumulation and signals further upside ahead.

Holding $33.8k is Key for $38k BTC Target

However, Moustache notes that Bitcoin needs to establish support and hold above $33,800 if it is to reach the next target of $38,000. A decisive break back below $33,800 could invalidate the breakout and see Bitcoin slump back into its previous trading range.

Therefore, Bitcoin bulls need to defend $33,800 and establish it as the new floor in order for further gains to materialize. If support at this level holds firm in the coming weeks, Moustache sees BTC quickly rallying up to retest $38,000.

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In summary, while Bitcoin has broken a long-term resistance, follow-through is still required. Maintaining the breakout level as new support will be key for Bitcoin to extend toward the next target of $38,000 in the near-term.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.