Bitcoin (BTC) has formed a technical pattern on the daily chart, indicating a potential move towards $40,000 in the coming week. This pattern, known as a continuation chart pattern, typically occurs after a significant upward or downward movement, followed by a short-term consolidation before the asset resumes its previous trend.
The signal for Bitcoin's price surge is a symmetrical triangle and a flagpole, marked by strong initial movements before the triangle formation. On the daily chart, this is represented by the purple line from October 19th to the day's high of $35,280 recorded on October 24th. Key aspects of this pattern include breakout levels (upward or downward) and the pattern itself.
Bitcoin's price has continued to rise since its 30% surge in mid-October. However, it faced resistance at $35,280 as profit-taking began.
The Relative Strength Index (RSI) is decreasing, indicating a potential downtrend. The Tenkan and Kijun indicators, known for enhancing visual perception of price action, validate this viewpoint, hovering around $31,690 and $30,909, signaling Bitcoin's weakness.
Hence, there's a possibility that Bitcoin might experience a price correction before its upward trajectory resumes. In such a scenario, the price could target $33,000, $32,000, or the critical level of $31,777. On the flip side, if the flag pattern continues, Bitcoin could move northward, breaching the psychological level of $35,000 and surpassing the previous high within the range of $35,280.
In case of a significant uptrend, the leading cryptocurrency could shift towards the psychological barrier of $40,000, potentially encountering resistance around $40,153. Such a move would signify a 20% increase from its current level.
However, only time will tell, even as the market approaches the weekend. Despite short-term conflicting signals, investors are pinning their hopes on the possibility of the U.S. Securities and Exchange Commission (SEC) approving a BTC ETF soon. They also closely follow the Bitcoin halving event, which is 187 days away. Additionally, optimism stems from recent mild remarks by Fed Chairman Powell, interpreted as dovish, leading to a sell-off of the U.S. Dollar (USD). Bitcoin, inversely correlated with the USD, experienced a slight uptick afterward.
The signal for Bitcoin's price surge is a symmetrical triangle and a flagpole, marked by strong initial movements before the triangle formation. On the daily chart, this is represented by the purple line from October 19th to the day's high of $35,280 recorded on October 24th. Key aspects of this pattern include breakout levels (upward or downward) and the pattern itself.
Bitcoin's price has continued to rise since its 30% surge in mid-October. However, it faced resistance at $35,280 as profit-taking began.
The Relative Strength Index (RSI) is decreasing, indicating a potential downtrend. The Tenkan and Kijun indicators, known for enhancing visual perception of price action, validate this viewpoint, hovering around $31,690 and $30,909, signaling Bitcoin's weakness.
Hence, there's a possibility that Bitcoin might experience a price correction before its upward trajectory resumes. In such a scenario, the price could target $33,000, $32,000, or the critical level of $31,777. On the flip side, if the flag pattern continues, Bitcoin could move northward, breaching the psychological level of $35,000 and surpassing the previous high within the range of $35,280.
In case of a significant uptrend, the leading cryptocurrency could shift towards the psychological barrier of $40,000, potentially encountering resistance around $40,153. Such a move would signify a 20% increase from its current level.
However, only time will tell, even as the market approaches the weekend. Despite short-term conflicting signals, investors are pinning their hopes on the possibility of the U.S. Securities and Exchange Commission (SEC) approving a BTC ETF soon. They also closely follow the Bitcoin halving event, which is 187 days away. Additionally, optimism stems from recent mild remarks by Fed Chairman Powell, interpreted as dovish, leading to a sell-off of the U.S. Dollar (USD). Bitcoin, inversely correlated with the USD, experienced a slight uptick afterward.
