Bitcoin Breaks Key Technical Resistance In A Squeeze Move: Bulls Now Target $36,000

On Monday, Bitcoin BTC/USD spiked by more than 3%, breaking through the technical barrier at $28,500 and reaching new highs in 2023. The king of cryptocurrencies is now trading at the highest level in over 44 weeks.

The ProShares Bitcoin Strategy ETF BITO, the biggest exchange traded fund tracking the cryptocurrency, rose 5.2% on Monday, posting the seventh-best session so far in 2023. 

John Bollinger, a well-known technical analyst and the originator of Bollinger Bands, recently said on Twitter that Bitcoin was about to experience a squeeze. The technical expert saw that the bandwidth of his beloved Bollinger bands was at its lowest in the previous 96 bars, which should warn a savvy trader of a change in the volatility regime.
A short squeeze did actually occur throughout the session, with BTC spiking higher. 

BTC/USD Technical Analysis: Retracement of The Bearish Trend At Play

BTC/USD Weekly Chart: TradingView

Bitcoin is up over 75% in 2023, but remains 57% below its all-time highs reached at the end of 2021.

Breaking firmly above the $28,200 barrier has been a key technical milestone for the cryptocurrency.

Bulls have currently retraced 23.6% of the major bear market, which connects the 2021 highs with 2022 lows.

This is a critical Fibonacci retracement level, and bulls may now set the ground for a shot at $36,000, the next crucial level at the 38.2% Fibo retracement.

The possibility of reaching this target increases if BTC makes a weekly close over the psychological $30,000 barrier, which is 3% above the current price.

On the downside, bears are now watching the overbought 10-week RSI for signs of a probable short-term reversal. Overall, the momentum is swinging towards the bulls, but a weekly closing below 30,000, along with RSI divergence, might be a valid excuse for bears to resurface. 

Read next: One Crypto Analyst Is Predicting An Incredibly Massive Bitcoin Rally This Year. Here's Why.

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