Can Bitcoin Rise Above $40,000?
The $38,000 level is a strong resistance zone for Bitcoin buyers. However, as long as the expanding channel pattern remains intact, there is a possibility of the BTC price continuing its recovery trend. The current intraday trading volume for Bitcoin indicates an 8.12% loss.
In the past few weeks, the crypto market has been volatile due to developments related to the delayed Bitcoin spot ETF and legal issues surrounding Binance. This has made it difficult for the BTC price to surpass the $38,000 mark, resulting in sideways movement. However, during this consolidation period, the coin price has adhered to an expanding channel pattern that has guided a rally over the past five weeks.
The BTC price is currently oscillating within this pattern’s trendlines. If the lower trendline’s dynamic support helps in a breakout above $38,000, buying pressure could increase and potentially push the recovery beyond $40,000. On the other hand, a breakdown below this support trendline might trigger a significant correction in Bitcoin.
De-correlation Between Bitcoin and Altcoins
A well-known Crypto Analyst, CryptoBusy, recently highlighted the de-correlation of Bitcoin with certain altcoins, using reliable market data from Kaiko. Over the last 60 days, Bitcoin has shown noticeable de-correlation with major altcoins, with XRP and BNB experiencing the largest drop while DOGE and ADA experienced the least.
This de-correlation could be a result of increasing uncertainty among crypto participants due to significant events in November.
- Moving Average Convergence Divergence: The declining MACD and signal lines indicate increasing bearish sentiment in the market.
- Bollinger Bands: The relatively flat upper boundary of the Bollinger Bands indicator acts as an additional barrier against buyers, suggesting potential resistance at higher price levels.
Hot Take: Bitcoin’s Recovery Potential
The Bitcoin price recovery has faced resistance near $38,000, leading to sideways movement. However, the expanding channel pattern provides support for buyers and offers a potential pathway out of this period of uncertainty. If Bitcoin can break above $38,000 with the help of dynamic support from the lower trendline, it may surge past $40,000. On the other hand, a breakdown below this support trendline could trigger a significant correction. The recent de-correlation between Bitcoin and altcoins adds to the market’s uncertainty. Despite these challenges, Bitcoin’s recovery potential remains intact.
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