Bitcoin (BTC) Price On The Verge Of Bullish Breakout, Buyers Seek $47,000

Rekha chauhan
Updated
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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The week ended on Friday, BTC buyers find some respite after the digital coin locked-in gains around 9%. BTC moved in sync with the US tech stocks, which witnesses some late bounce back on Friday. However, overall investors lost money since the downside rally begins in November.

  • BTC ended the second week of January with more than 9% gains.
  • The Momentum oscillators favor bullish bias.
  • BTC exhibits a strong correlation with high-risk technology stocks.

According to Matthew Sigel, head of digital assets research at VanEck, Bitcoin is moving in tandem with NASDAQ and other technology stocks. The selling pressure builds up in both as the US Federal Reserve turns more hawkish in its policy.

Source: Tradingview

A technical bounce back towards $45,000 is visible on charts On the four-hour chart, after witnessing a free fall from the highs of $52,129 on December 28 BTC shows resilience near $40K. The price consolidates in the range before breakout on Wednesday above $42K.

BTC is trading near the crucial 20 and 50 SMA with the formation of a “Doji candlestick”, which indicates traders need some confirmation before continuing the upside momentum.

A Bullish reversal pattern “Cup Handle” is formed, which makes the bulls cheerful. A decisive close above the $43,500 will fuel the upside rally, which could find the ultimate target near $47K. The MACD(Moving Average Convergence Divergence) trades above the midline supporting the bullish argument for the pair. Furthermore, the Daily Relative Strength Index (RSI) reads at 52. On Friday the market cap of the world’s largest cryptocurrency rose to $815,187,367,919.

On the flip side, If the pair breaks below $41k then it could invalidate the upside theses. Moving further, the price could re-enter in the consolidation zone of $40K-$42K. A break below $40K would drag the prices towards the lows last seen in August around $37K.

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.