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Bitcoin price prediction: BTC shortly tests $38,000, ready to move higher

Bitcoin Price Prediction

TL;DR Breakdown

  • BTC tested $38,000 support.
  • Bullish 4-hour pin bar likely to push BTC higher.
  • Next resistance ar $42,000.

Today`s Bitcoin price prediction is bullish as BTC/USD shortly tested $38,000 support and rejected further downside with a bullish 4-hour pin bar.

Bitcoin price prediction: BTC shortly tests $38,000, ready to move higher 1
Cryptocurrency heat map by Coin360

Overall, crypto markets are currently in the green. Bitcoin has remained relatively flat, while the major altcoins – ETH, DOT, LTC have declined. An exception is ADA, which is up by 22 percent over the last 24 hours.

Bitcoin price prediction: BTC shortly tests $38,000, ready to move higher

In our previous Bitcoin price prediction, we mentioned how Bitcoin will likely reject further upside and form a retracement. This Bitcoin price prediction was accurate as the market did reverse for several hours and tested support at $38,000. 

From there on, a 4-hour bullish pin bar was formed, indicating that BTC/USD is ready to reverse to the upside and move higher later on. Bitcoin`s next resistance target is around $42,000.

Bitcoin price movement in the last 24 hours

Over the last 24 hours, BTC/USD has moved in a range of $38,096 – $40,846, with a 24 hour trading volume of almost $67 billion. A small decrease of 1.44 percent is seen for the volume when compared to the previous period. 

Bitcoin Price Prediction 07.02.2021.
BTC/USD 4-hour chart, Source: TradingView

BTC/USD 4-hour chart – Bitcoin to move higher after bullish pin bar?

Looking at the 4-hour chart for BTC/USD, we can see a several day bullish momentum. After Bitcoin consolidated above the $32,500 support for several days, it regained its strength and started to move higher once more. 

During the first days of February, BTC broke above the $34,500 mark once again, and from there on, we saw a very strong bullish rally. The rally resulted in a previous local high of $38,500 tested. From there on, Bitcoin`s advance was met with some resistance, although it was broken after some consolidation.

What resulted was a strong push higher towards $40,000 resistance. In fact, Bitcoin did move all-the-way to $41,000, after which another small retracement was made, as mentioned in our previous Bitcoin price prediction.

This price action movement has led Bitcoin towards a bullish 4-hour pin bar being formed right at the $38,000 support. The 4-hour pin bar is a good signal that we will see further highs later on today. 

Some resistance could still be seen around $40,000. However, since Bitcoin already invalidated the price level, we should see Bitcoin heading higher later today. The first target for BTC is seen at the $42,000 mark. Bitcoin previously set an all-time high there, and the market has most likely retraced enough to attempt a breakthrough. 

From the current BTC/USD price, move towards the $42,000 resistance would mean a move of almost 7 percent. Therefore, a short-term long position could be taken with a decent risk/reward ratio. The long position could be left open if Bitcoin continues its bullish momentum close to it. However, caution is advised.

Alternatively, if Bitcoin rejects further upside once again and moves below current support at $38,000, a mid-term reversal could play out over the upcoming weeks.

Bitcoin Price Prediction: conclusion

Overall, Bitcoin price prediction for today is bullish. The analyst sees Bitcoin moving all-the-way towards $42,000 previous all-time high. If bullish momentum continues, we could see a new all-time high set early next week. 

Key support to watch for a break of bullish momentum is located at $38,000. If this support is broken, the analyst expects a much deeper, mid-term retracement for Bitcoin. Therefore, traders should pay attention to this level. If it is broken, Bitcoin should see a lot more downside next week.

While waiting for further Bitcoin price action, read our long-term Bitcoin price forecast, or check the latest guide on maximizing DeFi yields.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Lapin

Lapin

Lapin is an experienced freelance Crypto and Financial market writer and analyst. He has been trading for several years and holds a bachelor’s degree in Finance.

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