Bitcoin price could be on the cusp of major bullish breakout
Bitcoin has surged into a crucial area of resistance, forming the final hurdle as we look for a post-halving bull market.
Bitcoin on the rise post-halving
Bitcoin has been on the rise over the past week, with overnight gains taking us into the highest level since mid-February. The May halving event provided us with a crucial occurrence which has historically kickstarted a renewed phase of upside for bitcoin.
With the price surging this week, the big question is whether this is the beginning of that next bull phase for bitcoin. The monthly chart below paints a picture of previous halving events and how the price has acted around those two dates.
What is evident is that we see strong gains in the 12-16 months prior to the halving, with that bullish trend being turbo charged in the subsequent year that follows the halving date. Last month's halving comes off the back of a 182% rise in the previous 15 months, replicating the kind of move we have seen in the lead-up to the 2016 and 2012 halvings.
With that in mind, we are looking at a potential forthcoming period of strong gains for bitcoin to continue the trend seen over the past eight years.
Bitcoin technical analysis
Looking at things on a more granular level, the daily chart highlights how we have struggled to overcome the $10,506 level thus far.
Given the downtrend in since June 2019, a break through that $10,506 level would signal a significant shift in favour of the bulls.
With the long-term bullish outlook in mind, there is a strong chance we are on the cusp of a significant period of strength for bitcoin.
However, the key level to break comes in the form of that $10,506 threshold. Until that level is broken, the consolidation seen over the course of May remains in play.
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