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Bitcoin price prediction: BTC/USD skyrockets to $38,200 as bulls target $42K next

Bitcoin price prediction BTCUSD skyrockets to as bulls target K next

TL;DR Breakdown

  • Traders now seem confident about the current Bitcoin price prediction
  • BTC/USD manages to stay above $37,200 with an upward price slope
  • Bitcoin price is trading near upper Bollinger Band to reclaim $40,000 highs
  • Descending triangle pattern vanishes amid high volumes and positive breakout
Bitcoin price prediction: BTC/USD skyrockets to $38,200 as bulls target $42K next 1
Cryptocurrency heat map by Coin360

Bitcoin price prediction is now all set to reclaim bull runs of the recent past as the price floats above $37,200 resistance. The hourly charts are filled with large green candles confirming the bullish foothold of the buyers. Ever since BTC/USD broke out of the bearish descending triangle pattern, the price has continued to make higher lows.

The downward spiral and the ensuing stagnation that began last month after BTC touched an all-time high of $42,000 is all but over. In the past week alone, Bitcoin has gained approximately 12 percent in value to reclaim $37,000 on the daily charts. There have been minor fake breakouts that eventually caused sell-offs. However, Elon Musk’s tweets gave fresh impetus to bullish Bitcoin price prediction, and the price skyrocketed to higher levels beyond $38,200.

At the time of writing, the price is trading near $38,248, which is well above the crucial $38,000 resistance level. Successive daily candles have now closed above key resistance levels, thereby confirming the market’s overall bullish overtone. It is only a matter of days when fresh ‘Fear of Missing Out’ kicks in and the traders pile up more buy orders.

Bitcoin price movement in the last 24 hours – Consolidating at higher levels

The upper boundary of the Bollinger Bands is where all the action is happening right now. The BTC/USD is posting fresh higher lows, and the candles are mostly long body candles with a bullish overtone. The consistent movement above the descending triangle pattern shows the strength of the volume.

Today, the price touched a peak of $38,748. The BTC/USD has touched this high after the January all-time highs. Minor corrections may happen along the way, which may put BTC near-immediate support levels. First support lies at $37,000 and then at $34,800. However, the strong bullish momentum is evident in the volumes where buyers are eager to purchase at lower levels. So, any correction will likely turn into an accumulation frenzy.

The increasing participation of institutional investors further confirms the continuation of the bullish trend that began last Friday. MicroStrategy had purchased 295 BTC during the last month’s price correction phase. Bulls have full control over price movement on the hourly charts, selling pressure subsiding at higher resistance levels.

BTC/USD 4-hour chart – The race to $40,000 heats up

Bitcoin price prediction: BTC/USD skyrockets to $38,200 as bulls target $42K next 2
Bitcoin price chart by TradingView

Bitcoin traders and investors are eager to revisit the $42,000 highs. The BTC/USD pair must cross the $40,000 hurdle and resume the uptrend to achieve this level. Throughout 2020, Bitcoin made fresh new highs using stagnation phases as accumulation zones. The trend is set to repeat itself in 2021 if the current price action is any evidence.

  • Crucial Support Levels: $37,100, $36,050, $34,000
  • Crucial Resistance Levels: $38,800, $40,000, $40,725

There is no widespread ‘Fear of Missing Out’ yet in the Bitcoin price prediction. However, Elon Musk’s tweets have once again increased the interest of the masses in cryptocurrencies. The RSI remains at 61, meaning the bulls have a fair amount of room upstairs to play. Bitcoin price prediction further supports a robust crypto market that is witnessing a new boom in many altcoins. From Dogecoin to Ethereum, the cryptocurrencies are delivering fantastic trading opportunities.

The price is hovering within the safe Bollinger Band range. The BTC/USD is not breaking below the middle of the Bollinger Bands. However, the bulls need to increase the buying momentum to target $40,600. The real race to fresh new highs will begin once the $40,000 wall is taken down successfully.

Bitcoin price prediction conclusion – Clean breakout confirms the uptrend

The crystal clear breakout above the descending triangle pattern has shown that Bitcoin price prediction is now firmly settled in the bullish zone. A daily close below the immediate support at $36,700 can prove this rally to be a false breakout, but that has been put aside by the strong uptrend as of now. Profit-taking at $40,000 cannot be ruled out either.

The next logical resistance above $40,600 would be the $42,000 all-time high level. If it is taken down with a strong volume-powered rally, then there’s no stopping BTC/USD to touch $50,000 in the next few weeks. The support levels will move higher on the daily charts. With minor correction along the way, the Bitcoin price prediction will chart another bullish course for 2021.

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.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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