Bitcoin price back to the drawing board at sub $40 but technicals suggest an explosion to $40,000
- Bitcoin revisits $34,000 to allow more buyers to enter the market as upside eyes $40,000 again.
- BTC/USD is drawing nigh to a massive falling wedge pattern breakout.
Bitcoin price revisited support at $34,000 after rising to $40,000 last week. The recovery had been gradual but steady. BTC bulls fought massively for gains above $38,000. However, the resistance at $40,000 cut short the ultimate plan; hitting new record highs above $42,000.
At the time of writing, Bitcoin is trading at $35,820. The bulls’ plan is to keep the price above the 100 Simple Moving Average. Besides, technical levels suggest that BTC could soon embark on the journey of breaking barriers, perhaps rise to levels above $40,000 in the near term.
Meanwhile, the largest cryptocurrency is trading within the apex of a falling wedge pattern, hitting at a possible reversal.
The bullish outlook forms when an asset’s price falls with a series of lower highs and lower lows while converging at a single point referred to as the apex. A breakout is expected to occur before the trendlines converge.
The typical breakdown is mostly confirmed by an increase in volume but is usually fast and drastic. Investors must be alert to take full advantage of this pattern. However, it advisable to use the rising wedge pattern alongside other technical indicators and wait for the breakout to confirm.
BTC/USD 4-hour chart
For instance, the Relative Strength Index is rebounding from the support at 40. If the recovery holds above the midline and toward the overbought region, may well confirm the described breakout for gains eying $40,000.
It is worth noting that failing to hold the short term support at the 100 SMA could invalidate the anticipated recovery. Overhead pressure is bound to rise significantly, forcing Bitcoin back to the drawing board at $34,000 or $30,000.
Bitcoin intraday levels
Spot rate: $35,820
Relative change: 158
Percentage change: 0.42%
Trend: Bullish
Volatility: Growing
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