Crypto News- As we delve into the weekly charts, it becomes evident that Bitcoin (BTC) has been on a rapid ascent since the commencement of October. During this period, the price successfully broke free from a descending resistance trend line that had been holding its ground for a whopping 530 days.
What adds an intriguing layer to this upward momentum is the creation of six consecutive bullish weekly candlesticks. The last time such a pattern emerged was back in October 2020, marking the inception of the preceding bullish cycle.
Bitcoin Price Surges for the Sixth Consecutive Week, Reflecting 2020 Trends – Could 40,000 Dollars Be the Next Target?
A key tool in the arsenal of market traders is the Relative Strength Index (RSI), employed as a momentum indicator to discern overbought or oversold conditions. Readings above 50, coupled with an upward trend, signify the continued dominance of bulls, while readings below 50 suggest the contrary.
Insights from cryptocurrency traders and analysts on X indicate an optimistic outlook for the BTC price, expecting an acceleration in the rate of increase.
JJCycles expresses bullish sentiments based on both fundamental and technical factors. He raises an intriguing possibility: could CME (US institutions) opening longs be a hedge for the imminent approval of the spot Bitcoin ETF? The surge in open interest on CME in recent weeks supports this speculation, currently standing at nearly $4.5 billion. JJCycles also anticipates that the ongoing vertical accumulation will lead to an upward resolution. Echoing similar thoughts, Bob Loukas suggests an explosive movement that will propel the price out of the upward-sloping trend spanning over 30 days.
In a slight deviation, CredibleCrypto anticipates an initial drop before BTC resumes its upward trajectory.
BTC Price Prediction: Is $40,000 Within Reach?
Applying Elliott Wave (EW) theory, which analyzes long-term price patterns and investor psychology, the most plausible scenario suggests that BTC is in wave three of a five-wave increase (depicted in white) that commenced in September. The sub-wave count in black indicates BTC is currently in sub-wave four, characterized by a triangle-shaped corrective pattern – a common occurrence in this wave.
If BTC successfully breaks out from this triangle, a 10% increase to the next resistance at $41,000 is conceivable. This target is derived by projecting the height of the triangle to the breakout point.
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