- Bitcoin price prediction expects a correction to $39,500
- Strong resistance lies at the $42,000 mark.
- Strong support lies at the $38,400 mark.
The cryptocurrency market is booming, and all major cryptocurrencies are rising at lightning-fast speeds. The king of cryptocurrencies has crossed the double of its last all-time high at around $20,000 and is currently revolving close to the $40,000 mark. The king is growing increasingly unstable. The daily low for the king of cryptocurrencies was $38,320, while the 24-hour high was $41,950. The king stands at $41,200 at the time of writing.
The market is in overbought conditions, as it has been for the past couple of days. Nineteen of the twenty-eight technical indicators are giving out a buy signal with five neutral and four sell indications. 3 of the oscillators are observed at sell signals along with 4 buy and neutral signals each. Fifteen of the total seventeen moving averages are observed at buy indications with 1 sell and neutral indication each.
Bitcoin price prediction: What’s next?
Analyst Vince Prince has identified the cryptocurrency to be operating in a descending channel formation in his Bitcoin price prediction. Bitcoin has been bouncing back and forth inside the descending channel formation, testing both the resistance and support levels.
Per the analyst, bitcoin is also facing strong resistance at the $41,200 level as it has failed to cross the level previously. The analyst has also identified a resistance cluster at the intersection of the horizontal resistance line – at $41,200 – and the upper boundary of the descending channel formation. The analyst is expecting Bitcoin to try to break out of the formation, but it will be most likely unsuccessful in crossing the resistance cluster.
A strong pullback can be expected from the cryptocurrency when it fails to break out at the resistance level. The pullback will result in Bitcoin touching the lower boundary of the descending channel formation at around $38,000. Bitcoin will find strong support at this level as there also lies a horizontal support line at $38,000.
Per Vince Prince, two scenarios can unfold at this point; in the first scenario, Bitcoin will break out of the formation to the downside and complete a wave count. Bitcoin will enter the C-wave extension and will likely go down to $36,000. In the second scenario, if Bullish pressures continue, Bitcoin will resume its upward trajectory and will try to test the resistance level again.
Analyst Pawel Hodurek has expected further bullish momentum from Bitcoin in their Bitcoin price prediction. Per the analyst, Bitcoin broke out of the ascending channel formation and was expected to go lower. However, recent price actions show that Bitcoin has re-entered the channel, hinting at increased bullish pressures on the cryptocurrency. The analyst is also expecting the bearish momentum of the RSI to diminish as it is near breaking a resistance level. The MACD is at a bullish cross.
Alan Masters also identified an ascending channel formation in his Bitcoin price prediction. The channel is extremely steep, and the analyst is expecting the cryptocurrency to continue its hike. Masters has stated that the market is giving out strong indications of further bullish divergence. The analyst expects a break out towards $50,000 soon.