Bitcoin has finally broken through its recent range to the upside, surpassing 30k level for the first time since June 2022. While some observers may attribute the rally since mid-March to safe-haven flows amid banking turmoil, it seems more likely that Bitcoin is moving in tandem with tech stocks, in anticipation of Fed nearing a pause in tightening.
With 100% projection of 15452 to 25242 from 19552 at 29342 now surpassed, the next target is 161.8% projection at 35392. Even if a retreat occurs, outlook will remain bullish as long as 27,808 support holds.
Focus now shifts to the upside momentum of the current move and the reaction to the 35392 projection target. This level is close to the 38.2% projection of 68986 to 15452 at 35901.
Strong upside momentum and a decisive break of the 35k/36k zone would suggest that the rise from 15452 is a of a medium-term impulsive up trend, potentially leading to further gains. Conversely, weak momentum and rejection by the 35k/36k zone would indicate that rebound from 15452 remains just a corrective move.
Another question arising is whether NASDAQ can follow suit and decisively break through 38.2% retracement of 16,212.22 to 10,088.82 at 12,427.95, confirming the underlying bullish momentum in tech-related sectors.
