The Bitcoin (BTC) Price Reclaims Support Area After Brief Decrease
Following a brief decrease on November 16, the Bitcoin (BTC) price has now reclaimed a support area. As of now, the price is trading within a neutral pattern over a critical horizontal support area, prompting questions as to whether it will break out.
Bitcoin (BTC) Breaks Out from Long-Term Resistance
Bitcoin’s weekly chart shows that Bitcoin has seen a rapid increase in the previous five weeks. The digital currency likewise reclaimed the $31,000 horizontal area at the beginning of October, a whole lot of development given that the area had intermittently acted as both support and resistance since 2011. Furthermore, Bitcoin reached a new yearly high of $37,978 in November.
Market traders often use the Relative Strength Index (RSI) to identify overbought or oversold conditions in an asset. Readings over 50, coupled with an upward trend, suggest that bulls still have an advantage, which is as of now the case with the RSI.
The Bitcoin (BTC) Hashrate has likewise reached a new record-breaking peak, indicating increased computational power used by miners. This usually leads to an upward adjustment in Bitcoin mining difficulty following a hash rate increase. Regardless of previous increases being followed by downward movements, excitement about the Bitcoin (BTC) ETF has taken over as the dominant narrative.
Argentina’s election of a pro- Bitcoin (BTC) candidate as its new president, coupled with a recent report keeping in mind that Bitcoin (BTC) adoption has reached a new yearly high, have contributed to positive market sentiment. This is regardless of increasing transaction fees.
Bitcoin Price Prediction: Is $40,000 the Next Step?
Technical analysts employing the Elliott Wave (EW) theory have identified recurring, long-term price patterns and investor psychology to determine the direction of a trend. BTC’s possibly likely EW count suggests a five-wave increase beginning in September, with the present wave representing a corrective pattern. The upward movement could see the price increase by 35% and reach the next horizontal resistance at $50,000.
Regardless of this positive trend Bitcoin price prediction, a breakdown from the triangle pattern poses the risk of a 10% fall to the closest horizontal support area at $33,500.
Hot Take
In summary, the Bitcoin (BTC) price seems to have reclaimed a support area after a brief decrease, signaling probable for a breakout. Technical analysts are predicting a positive trend trend, with the price potentially reaching the next horizontal resistance at $50,000. Nonetheless, a breakdown from the present pattern could result in a whole lot of fall to the nearest support area at $33,500.
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