Bitcoin Bounces Back to Target $79,730 as Support Holds Strong

• Bitcoin is finding support at $28,000 and targeting $79,730.  
• If Bitcoin holds its support a rally towards $40,000 is possible.  
• Altcoins may see increased activity if Bitcoin remains stable. 

Bitcoin (BTC) has shown a strong bounce after retesting its key trendline support, currently positioned around the $28,000 level. The price action has been influenced by the recent filling of the CME gap, with Bitcoin looking to fill the remaining gap near $79,730. The price has been gradually rising, and it appears to be on track to meet this gap level, as indicated by the chart’s trendlines.  

The previous support level provided a solid foundation for the current bullish rally, with Bitcoin finding its footing and continuing to trade upwards in a relatively stable range. With Bitcoin now moving toward filling the CME gap, the likelihood of further upward momentum remains high, especially with the support trendline holding steady.

Key Support Levels and Continued Bullish Momentum

The marvelous rally of Bitcoin is attributed to various factors; among them, the trendline and the gap fill become the two most significant catalysts. The chart indicates that Bitcoin moves upward in a channel supported by previous price levels stretching back to the early months of 2023. 

The shaded green and blue areas indicate zones from which Bitcoin has recoiled many times, further satisfying technical support and thus increasing probability for near-term higher price targets. Should Bitcoin attempt to continue on top of the $28,000 level with momentum, next key resistance would therefore likely be situated somewhere close to the $40,000 level, where some selling pressure might be expected before it possibly heads towards the CME gap target of $79,730.

Potential for Altcoins to Rally in Parallel

With Bitcoin entering a consolidation zone and eyeing the CME gap at $79,730, movements toward altcoins may become accentuated. A potential rally in altcoins from a storage scenario is expected, provided Bitcoin consolidates above some key support levels. 

Traditionally, Bitcoin’s period of consolidation results in gains for altcoin markets, which are generally more volatile and flourish in bullish Bitcoin sentiments. While Bitcoin consolidates near the CME gap, an altcoin uptick would be needed as traders search for opportunities elsewhere than BTC. Nevertheless, this will play out only if Bitcoin maintains its strength above $28k and continues to rally.

Short-Term Outlook and Risk Management

Once again, it will be very important that Bitcoin continues winning above the $28,000 support level if it is to keep making its painful march toward the CME gap target. Otherwise, there may be a deeper pullback, even lower levels, especially if the general market trend turns bearish. Meanwhile, if Bitcoin continues to be bullish and fills the CME gap, it may pave the ground for new price highs in the next few months. A trader should closely observe the price movement, which breaks down below trendline support and would show resistance on about $40,000, to determine the next big move of Bitcoin.