Bitcoin Building a Strong Base, Opening the Door to a Possible 40K Dollars Rally: Trader

Crypto News- In a recent post, cryptocurrency trader and analyst Mind Trader has shared a bullish prediction for Bitcoin (BTC), suggesting that it could soon reach a price range of $36,170 to $40,000. The trader’s analysis hinges on Bitcoin maintaining a price level above $33,730, which serves as a critical support threshold.

Bitcoin Building a Strong Base, Opening the Door to a Possible 40K Dollars Rally: Trader

This prediction comes in the wake of Bitcoin’s upward trajectory over the past 24 hours, with a 1.38% gain according to CoinMarketCap data. At the time of the post, Bitcoin was trading at $35,182.38, comfortably above the key level emphasized by Mind Trader. However, the trader also pointed out the presence of a bearish rising wedge pattern on Bitcoin’s daily chart. This pattern indicated a potential price drop in the coming week unless Bitcoin manages to break above it in the next few days.

In a bearish scenario, Bitcoin could retest the $34,000 support level and potentially dip even lower if selling pressure persists. A breach below this level could expose Bitcoin to a decline as far as $28,760 within the following days. It’s important to note that the bearish thesis could be invalidated if Bitcoin achieves a daily candle close above the rising wedge pattern.

In this more optimistic scenario, Bitcoin might aim to turn the $36,900 resistance level into a support, providing a solid base for a potential climb to $40,000.

Additionally, traders and investors should be aware of a significant bearish technical flag on Bitcoin’s daily chart, with the Moving Average Convergence Divergence (MACD) line nearing a cross below the MACD Signal line. Such a crossing could indicate a potential bearish trend reversal for Bitcoin.