Bitcoin Clocks Gains Above $30K – How Sustainable?

The price of Bitcoin (BTC) surged to over $31,400 on Friday the 23rd of June, effectively hitting its highest level since 2022. The recent strong upward trend was fueled by growing institutional interest.

The popular digital currency has managed to surpass the $27,000 - $28,000 resistance zone. However, in the second half of the week, the momentum slowed as it diminished to the resistance area by $29,600 and $31,000 respectively. Bitcoin has managed to maintain a trading value above $30,000, which has proven to be a significant resistance point so far this year.

BTC/USD - Weekly Time Frame

How sustainable are recent gains?

In 2023 so far, having risen by over 85% in value, Bitcoin’s recent rally puts into question the sustainability of its gains. Some of the underlying downward pressures facing it include regulatory concerns and macroeconomic factors.

Over the weekend, the renowned cryptocurrency retested the $31,000 region, but eventually buyer exhaustion kept it from climbing higher. Presently, the bulls are putting on a fight to break the $30,373 resistance zone. Should they succeed in establishing another bullish pattern, the next target range to look for will be in the $32,600 - $34,700 range.

The support level to monitor in case of potential pullbacks stands at $29,650. In case of a more protracted correction, Bitcoin could slip to towards $28,500 - $28,000 during the correction initiation.