The price of Bitcoin continued to rise. A bullish trend has formed since the beginning of the year. The market is currently at the key resistance level of $30,500. Will Bitcoin bulls be able to break through it and start testing $31,000 in the short term?
This question is the most pressing now, because if the bulls can begin to test the level of 31,000, there is a high probability that the price of Bitcoin will be able to overcome the $35,000 mark in the second half of April.
Technical analysis of Bitcoin and its forecast
Data from Cointelegraph Markets Pro and TradingView showed that on April 15, the BTC/USD rate was around $30,500. The pair ended the trading week on Wall Street on a less volatile note, along with rather weak US stocks. With the 10-month high of $31,035 remaining in place, there is a chance that Bitcoin's price could rise further. You should consider the daily currency chart.
On the daily timeframe, Bitcoin price was able to break out of a narrow consolidation range around the $28K mark, attacking the $30K resistance. This level is an area of psychological and technical resistance and will determine the short-term future of the crypto market. A break above $31,000 could result in a bullish continuation towards the next significant resistance zone located near the $38K level, while a failure would result in a fall towards the 50-day moving average located near the $26K level.
Bitcoin's price is rising, and investors who bought it below $30,000 are now making profits. The SOPR indicator confirms this analysis. Short-Term Holders Spent Output Profit Ratio (SOPR) is an on-chain indicator that measures the ratio of realized profits of holders who purchased an asset in the last six months.
Values above 1 indicate profit-taking, while values below one are interpreted as investors selling their coins at a loss. This metric should be monitored to determine if the market is in the early stages of a new bull run or if it is just another of the many bull traps.
Will Bitcoin be able to exceed 31,000: forecast
Based on current technical analysis, it can be assumed that the price of Bitcoin may begin to rise again over the next few days. If Bitcoin starts testing the level of 30,500 – 30,800, then it could break the $31,000 mark. In this case, the bulls will continue to put pressure on the market, preventing the bears from forming a downward local trend.