The cryptocurrency rose above $24,000 twice this week. It also touched that level at the end of July, but was unable to hold there. A breakout above that mark could open the gates for bitcoin to test the next leg up. But technical analysts say it doesn't necessarily have lasting implications.

Bitcoin reached a high of about $24,700 on Thursday. It found its low in June, at $17,601.58, and then went on to the big comeback in July. The crypto world has had plenty of good news to keep investor sentiment high.

"Bitcoin is weak after completing that massive drop," de Kempenaer says. If bitcoin breaks above $24,000, the upside potential would be limited to about $20,000. On the downside, if bitcoin falls below its June low, it could continue down to $12,500.

Mid-September could be a significant turning point for bitcoin, Youwei Yang, director of financial analytics at StoneX, said. For him, $25,000 is the key resistance level for bitcoin. If it can notch that, there's potential for a "near-term summer rally" up to $28,000.
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