Bitcoin (BTC) achieved a milestone by reaching $35,000 for the first time in 2023. This surge was accompanied by a remarkable increase in spot trading volume, which rose by 187% to $50 billion, and a 13% rise in market capitalization, reaching $676 billion.

The rally commenced the previous week amidst rumors about the approval of a BTC spot ETF proposal by BlackRock. Notably, investors, particularly institutional players, were quick to capitalize on this bullish momentum to satisfy their appetite for Bitcoin.

According to data from CoinGecko, over the past 24 hours, the price of Bitcoin increased by 13%, marking a 21.5% rise over the course of seven days and an impressive 30.5% surge in the last month, ultimately settling at $34,520 on Tuesday.

From a technical perspective, the outlook remains bullish, with the uptrend showing no signs of weakness. The confirmation of an ascending triangle pattern suggests the possibility of a larger breakout to $45,711. However, before delving into the forces driving this surge to levels just above $35,000, let's take a closer look at the contributing factors.

Institutional investors are actively participating in the rush to secure positions and capitalize on the unexpected rally in Bitcoin's price. Optimism surrounding the approval of a spot BTC ETF in the United States is a major driving force behind this breakout, initially propelling the price above $30,000 and now towards $35,000.

According to reports from CoinDesk, interest in Bitcoin remained high during the Asian trading hours on Tuesday, spurred by the revelation of a BlackRock ETF on the Depository Trust & Clearing Corp. (DTCC) website.

Furthermore, Bitcoin futures open interest (OI) reached 100,000 BTC on the Chicago Mercantile Exchange (CME) for the first time in history, indicating a significant increase in institutional interest in the leading cryptocurrency.

As CME's BTC futures OI reached this milestone, the market share of CME surged by 25%, and it could soon surpass that of Binance's perpetual market, as suggested by Vetle Lunde, an analyst at K33Research.

The breakout of Bitcoin above an ascending triangle pattern, accompanied by a 49% surge targeting $45,711, is an indication of a forthcoming bullish phase. Although bulls have been steering the uptrend since the beginning of the year, resistance at $30,806 previously prevented the breakout.

Trading above this key level validated the triangle breakout, bolstered by a substantial increase in trading volume. Traders were anticipated to trigger buy orders just above this level with the aim of reaching $45,771.

The Relative Strength Index (RSI), which continues to trend upward at 61, reinforces the bullish sentiment. Additionally, Bitcoin's price is holding above several key indicators of the bull market, including the 21-week Exponential Moving Average (EMA), the 100-week EMA, and the 200-week EMA.

In the short term, traders should monitor how Bitcoin reacts to immediate resistance at $35,000. Maintaining this level could serve as confirmation for bulls to propel the triangle breakout toward $45,771.

On the downside, a retracement may offer sidelined investors an opportunity to enter the market, with support expected at selected moving averages of $28,200, $27,901, and $25,797, respectively.

Notably, crypto analyst and trader Rekt Capital has advised his followers not to feel left out by Bitcoin's recent price movement, emphasizing that market cycles are lengthy, and opportunities for re-accumulation will arise.

FOMO may lead some investors to believe they missed the bull run, but as Rekt Capital suggests, "A market cycle lasts a long time, there will always be breakout rallies and there will always be pullbacks. Another opportunity will always present itself."