- BTC price analysis shows BTC on the cusp of a bullish breakout
- BTC crosses $38,500 with decent volumes to challenger upper channel resistance
- BTC/USD is showing signs of breaking out from the narrow $10,000 price range
- Price emerges out of the descending price channel with bullish bias
Ever since the BTC/USD has fallen from $64K highs, the selling pressure has never let BTC come out of the woods. However, after a month-long stagnation and consolidation, the pair is finally showing signs of a renewed bullish strength. Both investors and traders are getting frustrated by the inactive price action moving within a tight range. The entire crypto realm is waiting for signs from BTC/USD pair for further direction.
Long-term bulls still believe that the BTC is in a bullish trend and that the current price action is a temporary phase. After a muted weekend, we are finally witnessing some bullish price movement on the hourly charts as the pair crosses above the upper Bollinger Band at $39,000. The range-limited price action may be over as the bears prepare for an onslaught from the bulls.
The repeated failure of BTC to move beyond $40K and challenge $42K has kept large investors out of the picture. BTC price analysis also shows that the pair has been undergoing accumulation near $32,000 to $35,000 region which will be evident in the strong support zone at $35,000 in case the BTC climbs higher in the next few sessions.
BTC price movement in the last 24 hours: BTC is not out of the woods just yet
Banking giant JP Morgan states that BTC will be facing a long-term bear market ahead similar to 2018 downturn. However, not many crypto experts share the same viewpoint. Even though the BTC/USD has underperformed in the last four weeks, the pair is well supported by massive buy walls near $30,000 level. The rising inflation in the U.S. also suggests that investors may give BTC more weightage in their portfolio.
The current price of $38,900 has come a long way after stagnating near $36,500 for multiple days. The entire weekend saw BTC make little gains. As per BTC price analysis, the current rise comes with a massive green candle on the hourly charts which may reignite bullish trend as traders begin a new week. The 50-day moving average at $45k will be the first hurdle in case bulls manage to cross $42,000 on Monday.
On the other hand, the new week may bring additional selling pressure. BTC price analysis shows that the pair faces huge resistance at $ 2,450 which may force the pair back below $40k level. BTC may consolidate near $39,450 before moving to higher resistances.
BTC/USD 4-hour chart: Ready for a breakout above $42K
Bears and bulls have been fighting for over a month now. Lately, the accumulation is evident from the higher high pattern on the hourly charts. The descending channel is now turning upwards as the pair moves past $38,800 level. However, nothing can be said definitely until the pair breaks above $42K confidently and close above the 50 day moving average. BTC price analysis shows the .382 Fibonacci retracement from the May sell-off is also near $42,000 level.
The lower support at $37,000 is the immediate fall-back pivot point that the bulls with defend well. The upper trendline from $42,000 highs will further find support from buyers near $35,000 where the current trendline has built a strong support wall. The same region will cushion any immediate pullback that will help arrest further decline towards $30,000.
A favourable next week will help the bulls chart new course towards $45,000 level. A bullish comeback beyond the January high of $42,000 will form an ideal support zone for a higher move as per BTC price analysis. The RSI is at 48 and has shown sign of a bullish breakout that may take the price above critical resistance at $42,000.
BTC price analysis conclusion: $42,000 pivot point holds the key
Technical indicators still haven’t given clear signals about a bullish trajectory. The MACD is showing no clear breakout or crossover. Additionally, the ‘Awesome Oscillator’ shows emergence of successive lower peaks that do signal a bullish intent on the hourly charts.
The next week’s trajectory will determine how the bulls react to a rising liquidity. A clear breakout would first challenge the $42K level where slight selling may pose a challenge to BTC/USD. BTC price analysis further shows that the pair must close above $40,000 to build a bullish momentum.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.