Bitcoin (BTC) is up nearly 10% this week and broke above a trend line that characterizes a two-month bearish pattern and the price's 50-day simple moving average.

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The break of the trend line left the door open for the cryptocurrency to head towards $30,400, according to FxPro senior market analyst Alex Kuptsikevich.

“In terms of technical analysis, this is an important bullish signal as the price closed above its 50-day moving average and above previous local highs in a strong move on Tuesday. The move confirms the break of the bearish trend that has been recorded over the past two months,” Kuptsikevich said in an email.

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“The next target for the bulls is between the April and May highs of $29,400 and $30,400,” Kuptsikevich added.

Market sentiment has turned bullish this week due to a large number of spot bitcoin ETF filings from BlackRock (BLK), WisdomTree, and Invesco (IVZ).

(Photo) The move above the descending trend line suggests that the price pullback has ended and the broader uptrend signaled by the reverse head-and-shoulders breakout in March has resumed. (TradingView/CoinDesk)

The breakout of the descending trend line on the daily chart indicated that the pullback from the April 14 high of $31,000 has run its course and the broader uptrend has resumed.

It is important to note that the pullback ran out of steam near $25,200, the former resistance level turned support during the US banking crisis in March.

The defense of $25,200 and subsequent breakout represented a positive resolution of a technical analysis pattern called a “throwback” and suggested scope for a rally to $37,000.

Bitcoin was trading around $28,950 at the time of publication, according to data from CoinDesk.

Article edited by Parikshit Mishra and translated by Natalia Paulovsky.