Bitcoin (BTC) Price Regains Key Support Level
The **Bitcoin (BTC)** price has recently regained a crucial support area after a brief decline on November 16. At present, the price is trading within a neutral pattern above a critical horizontal support level. Crypto enthusiasts and investors are eagerly watching to see if **Bitcoin** will break out of this pattern and continue its upward trajectory.
Bitcoin Breaks Out from Long-Term Resistance
By examining the weekly chart, it’s evident that **BTC** has experienced rapid growth over the past five weeks. Specifically, the **Bitcoin** price retook the $31,000 horizontal area at the start of October. This is a significant development, as this area has alternated between serving as support and resistance since 2011. Notably, **BTC** surged to a new annual high of $37,978 in November. Traders utilize the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and make informed decisions regarding the buying or selling of an asset. The RSI is currently increasing and stands above 50, indicating a favorable outlook for **Bitcoin**.
Moreover, the **Bitcoin** Hashrate recently reached an all-time high. The Hashrate measures the computational power utilized by miners, and an increase typically precedes an uptick in BTC mining difficulty. Despite historical trends indicating that such increases are typically followed by downward movements, the prevailing narrative around the Bitcoin ETF has taken precedence. Additionally, Argentina elected a pro-Bitcoin candidate as its new president, and a recent report highlighted that Bitcoin adoption has surged to a new annual peak, despite the rise in transaction fees.
BTC Price Prediction: Is $40,000 the Next Step?
Technical analysts employ the Elliott Wave (EW) theory to identify recurring long-term price patterns and investor psychology, aiding them in determining the direction of a trend. Based on the most probable EW count, it is suggested that **BTC** initiated a five-wave surge in September, with wave three being extended. The sub-wave count indicates that **BTC** is currently in wave four of this upswing, taking the shape of a triangle, the most likely pattern for a corrective wave.
If the current upward momentum of **BTC** continues, the price could witness a 35% surge, reaching the next horizontal resistance level at $50,000. Initially, a high near $42,800 is expected before a price correction occurs, ultimately leading to the completion of the entire upward movement near $50,000. However, a breakdown from the triangle pattern could trigger a 10% drop to the nearest horizontal support area at $33,500.
Despite this bullish outlook, investors should always conduct their own research and seek professional advice before making any financial decisions, especially in a dynamic market like the cryptocurrency space.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. While BeInCrypto is dedicated to providing accurate and unbiased reporting, market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
By incorporating key insights from technical analysis and market trends, it’s clear that the **Bitcoin (BTC)** price has displayed strong resilience and upward potential in recent weeks. As the cryptocurrency market continues to evolve, staying informed and exercising caution are vital for any investor or enthusiast. For the latest updates on cryptocurrency and blockchain technology, visit Uber Crypto News.
Comments are closed, but trackbacks and pingbacks are open.