Bitcoin 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 Bitcoin 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. Bitcoin 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.
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 Bitcoin 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. Bitcoin price analysis shows that the pair faces huge resistance at $ 2,450 which may force the pair back below $40k level. Bitcoin may consolidate near $39,450 before moving to higher resistances.
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. Bitcoin 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 Bitcoin 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.
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. Bitcoin price analysis further shows that the pair must close above $40,000 to build a bullish momentum.