The post Optimism Surrounding Bitcoin Pushes Price Above $38,000; Technicals Suggests a Rise Beyond $40,000 Is Imminent appeared first on Coinpedia Fintech News
In an interesting move, Bitcoin soared above the pivotal resistance zone and almost reached $39,000 before facing a small pullback. The bulls have held a tight grip on the rally without letting the bears flourish. This lifted global market capitalization by nearly 1.36%, while investors appear to have become optimistic about the future of the BTC price rally.
What led to a sudden shift of momentum? Why did the BTC price soar to $38,999?
The BTC price was heavily consolidating along the resistance and accumulating strength to trigger a fresh upswing. Alongside, a few factors also contributed during the recent jump which are believed to have an impact in the long term:
- The buzz around the approval window for the Bitcoin spot ETF is speculated to be between January 5 and 10, 2024
- MicroStatergy’s huge buy of over 16,000 BTC worth $608M and letting out plans to buy BTC worth $750M more
- BTC longs and shorts both get activated, creating huge volatility, while the exchanges foresee a persistent supply of around $38,000
- New money enters the space as the spot markets are trading at a premium. Besides, the USD market is consistently higher than USDT
What’s Next: Will the BTC Price Reach $40,000 This Month?
Bitcoin has been trading in an ascending trend since the start of November, which has changed the dynamics within the space. Now that the price has pierced through the pivotal resistance, a massive move towards the north could be imminent. However, after facing rejections just below $40,000, these levels need to be closely monitored.
The BTC price pierced through the resistance of the ascending triangle and, despite facing a pullback, continued to trade above the zone. Besides, the MACD displays the end of the bearish phase, which occurs after the selling pressure eases. Additionally, TSI, which is used to determine the strength and momentum of the rally, flashes bullish signals. As the price breaks out in the lower frames as well, rising beyond the descending channel signals a potential shift for the upward trajectory.
Collectively, the BTC price is believed to rise and retest the resistance at $39,000, while a pivotal resistance at $39,700 could hinder the pace for a while.
#PriceAnalysis #Bitcoin [Source: Coinpedia]