Bitcoin Price Poised to Reach $48,000?
The recent breakout from the expanding chart pattern suggests that buyers are preparing for a strong recovery in the BTC price. However, there may be significant supply pressure at the $48,200 level. The intraday trading volume in Bitcoin is $40.9 billion, indicating a substantial increase of 43.47%.
The rising trendlines of the expanding channel pattern have been tracking the Bitcoin price recovery over the past five weeks. These diverging trendlines typically indicate increased uncertainty among market participants.
However, the BTC price has gained significant momentum since early December, breaking through the resistance trendline of the channel on December 5th. This breakout demonstrates the strong commitment of buyers to continue the current recovery phase.
Currently trading around $44,100, it is crucial for buyers to maintain these gains. If they can sustain this level, there is potential for a further 10% increase in the recovery trend, targeting the next major resistance level at $48,235.
Bitcoin Recovery Boosted by Short Liquidations
During this recovery period, there has been a significant surge in short liquidations in the Bitcoin market. Coinglass data shows that on December 4th and 5th, approximately $173.88 million worth of short positions were liquidated. This mass exit of short traders is likely to introduce more buying pressure into the market, further strengthening the ongoing recovery. With this influx of buying interest and the technical breakout, Bitcoin has a favorable outlook for continued upward movement.
- Bollinger band: An increase in the upper boundary of the Bollinger band indicator indicates that buyers are dominating this asset.
- Vortex indicator: A wide gap in the bullish crossover state between VI+ (blue) and VI- (pink) accentuates an aggressive recovery trend.
Hot Take: Bitcoin Price Shows Strong Recovery Momentum
Bitcoin has demonstrated a strong bullish trend since the beginning of December, with a significant 17% increase in just one week. The recent breakout from the expanding channel pattern’s resistance trendline has further invigorated the coin’s recovery momentum. With the BTC price currently trading around $44,100, there is potential for further gains if buyers can sustain this level. The surge in short liquidations and technical indicators such as the Bollinger band and Vortex indicator support the ongoing recovery. Bitcoin’s path towards $48,000 seems promising as it continues to attract buying interest and overcome key resistance levels.
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