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Bitcoin trend analysis – BTC/USD bottoms out as bulls pursue $42k again

Bitcoin trend analysis BTCUSD bottoms out as bulls target k again
  • Bitcoin trend analysis back into the bull mode as price clears key resistance $37,000
  • Bulls target $40,000 highs as new liquidity helps surpass a significant resistance
  • Profit-booking can disrupt the current consolidation phase
Bitcoin trend analysis – BTC/USD bottoms out as bulls pursue $42k again 1
Cryptocurrency heat map by Coin360

TL;DR

Bitcoin has been steadily climbing above important resistances as traders look set to resume the recently-lost bull run. In the past 24 hours, the BTC/USD price has climbed more than 8.5 percent. Still, the BTC/USD price is trading within a climbing range, i.e., $36,350 to $40,110.

The price is presently trading above the 50-hour and 10-hour exponential moving averages, a good sign for the bulls. The price hit a high of $40,112 before falling back into the Bollinger Bands. Since then, the price has stuck in a sideways movement and holding above the $37k mark.

After the recent correction, Bitcoin trend analysis was predicted to continue sideways for a few days. However, today’s high of $40,112 has shown that bulls are in command once again on the hourly charts. The continuation of the bullish run shows that bulls will eventually target $42,000 highs once again.

Bitcoin price movement in the last 24 hours – Steady but rising

 Bitcoin crossing $40,000 shows that the recent decline was just another correction. Reaching the $40k level once again in a week shows vigorous buying at lower levels. The smart money is still looking for opportunities to purchase Bitcoin. The conviction that BTC will rise further and that current levels are buying phases will help the long-term bull run.

The sell-off could not materialize because the price could not go under 100-day SMA, which is currently hovering around the $30,000 level. The conventional spot markets are also undergoing sideways movement, which may be evident in the crypto market’s current stagnation.

In the last 24 hours, Bitcoin trend analysis is well within the technical range and Bollinger Bands. The upper resistance at $39,000 is still putting minor selling pressure. The price needs to not only cross $38,000 but also close above the $40k mark. Institutional buying is evident from the fact that BTC could cross $40k after touching a low of $31,000 a few days ago. The volatility and the liquidity are both helping paint another bull rally in Bitcoin trend analysis.

BTC/USD 4-hour chart – Consolidation on the hourly charts

Bitcoin trend analysis – BTC/USD bottoms out as bulls pursue $42k again 2
Bitcoin price chart by TradingView

The hourly charts are full of sideways movement consisting of green and red candles. The bull rally is not evident on the smaller timeframe charts. The derivatives sector is still in positive territory, reflecting a bullish trend among the traders. When traders are willing to take on more risk, the fundamental view turns positive.

Currently, volatility is impacting Bitcoin trend analysis and also affecting the risk appetite. The bullish opportunity struck too soon, and BTC investors are back into the trading zone. The quick turnaround has helped create a bull run pretty fast compared to previous consolidation phases. Bitcoin trend analysis reveals that the high volatility period is likely to continue for some time, which can eventually prove positive for the bulls.

RSI hovers around the 60 marks and provides a fair amount of room for the price to go upwards. The 100-day moving average is not yet sloping upwards, meaning the price is safe so far. The 20-day EMA is well below as well at $33,789. Lack of liquidity on the weekend can fuel wild rides, but the pair is not expected to break below critical levels.

The symmetrical triangle emerging in the Bitcoin trend analysis can impede the bullish run. However, the pattern can also reflect the continuation of the current consolidation trend that may favor the bulls.

Bitcoin trend analysis conclusion – Beware the current consolidation

The current consolidation comes way too quick – within a week of hitting the all-time highs. However, the price is yet to acknowledge the same on the more extensive timeframe charts. BTC/USD pair must sustain the momentum with large volumes and close above all-time highs for successive days. The lower support levels must rise once again on the daily charts.

Any successive closures under the support levels can trigger another bout of selling. The correction can last longer since the volumes are low, and investors might want to wait for lower levels before buying. Profit-booking by short-term traders can trigger another rally.

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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