Bitcoin bulls saddle up for a move to $35,000 as Panama opens its doors to BTC
- Bitcoin price prepares the steam for a move to $35,180 after the recent run-up.
- The second leg up will come after a healthy retracement to the $29,100 to $30,241 buy zone.
- A breakdown of the $27,708 support level will invalidate the short-term bullish thesis.
Bitcoin price seems to be slowing down after the recent rally, suggesting that a retracement is likely. A pullback will do more good than bad for BTC as it would allow sidelined buyers to step in and propel the next leg of the upswing.
While the big crypto prepares for the second phase of its bullish move, Panama city and its banks are opening up to BTC. The Panamanian financial institution, Towerbank, in particular, has turned crypto-friendly by paving a path for crypto adoption.
The vice president of product at Towerbank Gabriel Campa stated that this step would alleviate the pain points of citizens who often face setbacks using the banks. He also noted that such delays will not occur when using cryptocurrencies.
Bitcoin price prepares for next phase
Bitcoin price has swept the range high at $31,493 and is currently consolidating above it, trying to establish a directional bias. The likely move would be a bullish retracement to the $29,100 to $30,241 buy zone.
Interestingly, this area encapsulates Monday’s low at $29,288 and the one-hour demand zone, extending from $29,288 to $29,450. Therefore, the support confluence is a good place for a reversal and to kick-start a new leg-up.
The resulting uptrend is likely to propel Bitcoin price to the CME gap extending from $34,445 to $35,180. These gaps are formed since CME trading is closed on the weekends. This move would constitute a 20% ascent from the $29,288 level and is likely where the upside is capped for BTC.
BTC/USD 1-hour chart
Regardless of the optimism around Bitcoin price after the recent run-up, a breakdown of the $27,708 support level will create a lower low and invalidate the short-term bullish thesis. This development could further crash Bitcoin price by 8.6% to May 12 swing low at $25,333.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
