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Bitcoin Breaks Out – Bull Established?

Are you wondering if bitcoin has finally entered a new bull market? If so, you are not alone. Many investors and traders are eagerly watching the of the leading cryptocurrency, hoping for a sustained rally that could take it to new highs. But how can we tell if bitcoin has really broken out of its long consolidation phase and is ready for a new uptrend? In this article, we will look at some of the key indicators and factors that could signal a bullish breakout for bitcoin.

Bitcoin Resumes Its Journey Upward

One of the most obvious signs of a bullish breakout is the action itself. Bitcoin has recently broken above the $30,000 level, which was a major resistance zone for the past four weeks. This level also coincided with the 50-day moving average, which is a widely followed indicator of the medium-term trend. By clearing this hurdle, bitcoin has shown that it has regained its momentum and is ready to challenge the next resistance at $32,000.

According to CoinMarketCap, most indicators are flashing positive, suggesting that bitcoin could avoid a bull trap and continue its ascent. However, there is still one point of concern: the bearish divergence that has been building since January on some timeframes. This means that while the price has been making higher highs, some indicators such as the RSI or the MACD have been making lower highs, indicating a of momentum and a possible reversal. If this divergence plays out, bitcoin could drop lower. However, if bitcoin continues to rise and invalidates the divergence, it would confirm the strength of the breakout.

Bitcoin Dominance Still Rising

Another sign of a bullish breakout for bitcoin is its dominance over other . Bitcoin dominance measures the percentage of the total market capitalization of all cryptocurrencies that is attributed to bitcoin. It reflects the relative strength and demand for bitcoin compared to other coins. Currently, bitcoin dominance is at nearly 48.5%, which is a significant increase from its low of 39% in May. This means that bitcoin is outperforming most altcoins and attracting more capital into its market.

A rising bitcoin dominance could indicate that investors are more confident and optimistic about bitcoin's prospects than other coins. It could also signal that investors are seeking safety and in bitcoin amid uncertain market conditions. However, a high bitcoin dominance could also mean that altcoins are undervalued and could catch up with bitcoin once it stabilizes or consolidates. The next day or two could be very important in this respect, as we could see a shift in and capital flows between bitcoin and altcoins.

Waits Its Turn

While bitcoin is breaking out, ethereum is comparatively quiet at this stage. Ethereum is the second-largest cryptocurrency by market capitalization and the leading platform for and (DApps). Ethereum has been in a rising channel since June and has recently hit the top of the channel at over $1,900. If rejected, it could fall back to the bottom of the channel, which could be around $1,800, or find support at just above $1,700.

If bitcoin dominance starts to roll over, as bitcoin pauses and ranges sideways again, then perhaps ethereum will lead the altcoins on a run. Ethereum has many fundamental factors that could boost its demand and , such as its upcoming network upgrade (EIP-1559), its transition to (PoS), and its growing of DApps and protocols. However, it will need to break some strong resistance at $1,915 first before it can resume its uptrend.

What Is Solana And Why Is It Pumping?

Solana is one of the altcoins that has been pumping the hardest so far. Solana is a high-performance platform that aims to provide , , and for decentralized applications (DApps) and protocols. Solana claims to be the fastest blockchain in the , with a throughput of over 50,000 transactions per second and a sub-second finality. Solana also supports smart contracts, cross-chain communication, and .

One of the reasons why Solana is pumping is its growing and in the space. Solana hosts many popular DApps and protocols, such as Serum, Raydium, Audius, Oxygen, and RAMP. Solana also recently launched Wormhole, a that connects Solana with Ethereum, Smart Chain, and Terra. Solana also benefits from the support of prominent investors and partners, such as Alameda Research, FTX, Multicoin Capital, and Coinbase Ventures.

Another reason why Solana is pumping is its technical strength and potential. Solana has a unique architecture that combines several innovations, such as (PoH), Tower Consensus, Turbine, Sealevel, Pipelining, Cloudbreak, Archivers, and Gulf Stream. These innovations enable Solana to achieve high speed, low cost, and high security without compromising or censorship resistance. Solana also has a native called , which is used for paying transaction fees, , and .

If you are interested in learning more about Solana and its price for -2030, you can check out this article by Changelly. According to their , Solana could reach between $60.93 and $199.71 by 2025, depending on the growth scenario it follows. 🚀🚀🚀

Conclusion: Is Bitcoin Ready For A New Bull Market?

Bitcoin has shown some impressive signs of a bullish breakout in the past few days. It has broken above the $30,000 level and the 50-day moving average, indicating a strong momentum and demand. It has also increased its dominance over other cryptocurrencies, reflecting its confidence and leadership in the market. However, bitcoin still faces some challenges and that could hinder its progress or even reverse its direction. These include the bearish divergence on some timeframes, the resistance at $32,000 and $35,000 levels, and the uncertainty in the global macroeconomic and .

Therefore, it is too early to say that bitcoin has entered a new bull market for sure. Bitcoin needs to confirm its breakout with more volume and conviction, as well as invalidate the bearish divergence and clear the resistance levels ahead. Bitcoin also needs to maintain its dominance or at least allow some healthy rotation into altcoins that could boost the overall market sentiment and capitalization. Bitcoin also needs to monitor the external factors that could affect its price positively or negatively.

In conclusion, bitcoin has made a promising start for a bullish breakout but it still has some work to do before it can a new bull market. If you are a bitcoin investor or trader, you should always do your own research and analysis before making any decisions. You should also be prepared for any possible scenarios and outcomes that could happen in this volatile and unpredictable market. And remember: never invest more than you can afford to lose! 💸💸💸

What do you think about bitcoin's breakout? Do you think it is the start of a new bull market or a bull trap? Let know in the comments below! And don't forget to share this article with your friends and family who are interested in bitcoin and cryptocurrencies! 😊😊😊

Emily Lee

By Emily Lee

Hi, I’m Emily Lee, a writer at I love to write about technology, culture, and entertainment. I’m always curious about new trends and innovations, and I enjoy sharing my insights and opinions with my readers. I have a degree in journalism from the University of California, Berkeley, and I have worked as a freelance writer for various publications before joining When I’m not writing, I like to read books, watch movies, and play video games. You can follow me on Twitter @emily_lee or email me at

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