Bitcoin, the prominent leader in the cryptocurrency industry, holds a significant influence over the entire market. The movements of Bitcoin often dictate the direction of other cryptocurrencies. When the price of Bitcoin rises, it tends to cause an upward trend in the prices of most other coins. Conversely, if Bitcoin’s price experiences a decline, it tends to have a similar effect on other cryptocurrencies.
With this in mind, let us delve into the realm of technical analysis to determine whether it is plausible to anticipate Bitcoin’s resurgence above the $40,000 mark.
The current week has been notably bullish for Bitcoin, as its price surged impressively from $26,100 to $31,400, marking a substantial gain of approximately 19%. This upward movement aligns seamlessly with Stan Weinstein’s 30-week moving average pattern, as previously analyzed and anticipated.
Moreover, an intriguing development has taken place with regards to Bitcoin’s crucial resistance levels. What was once a formidable resistance has now transformed into a pivotal support level, standing at $25,000. A noteworthy pattern that has been unfolding over an extended period is the Cup and Handle Pattern, a bullish indicator. Should this pattern materialize as anticipated, Bitcoin’s price has the potential to surpass the $40,000 threshold.
Cup and Handle Pattern :
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Presently, Bitcoin encounters resistance as it approaches its previous high of $31,100. However, should Bitcoin successfully breach this resistance level and conclude the week above it, it is highly probable that the Cup and Handle pattern has commenced its manifestation. Looking ahead, there are several significant resistance levels that Bitcoin may encounter, namely $34,400, $39,800, $44,400, and $48,300. These price points serve as targets for Bitcoin, contingent upon the weekly closing surpassing $31,500. $28,500 is a must hold area for Bitcoin to remain bullish to hit the above targets. If Bitcoin holds $28,500 area in weekly timeframe then we are in a bullish momentum, breaking $28,500 support can cause a sell panic in the market which can take BTC down to $27,000.
Bitcoin Dominance serves as an essential metric that sheds light on the market position of Bitcoin and the extent to which it dominates the overall market share. Currently, Bitcoin Dominance holds a significant stake at 51.7%, implying that a substantial portion, approximately 51.7%, of the market share is solely controlled by Bitcoin. Notably, Bitcoin Dominance has been steadily increasing over the past two weeks, driven by its ability to surpass resistance levels that have persisted for a remarkable two-year period.
Looking ahead, the upcoming resistance level for Bitcoin Dominance looms at an intriguing 52.12%. A breakthrough beyond this threshold would signal a remarkable shift in Bitcoin’s market strength and potentially open doors to further growth. Importantly, a decline in Bitcoin Dominance presents a promising opportunity for alternative cryptocurrencies, known as altcoins, to experience substantial price gains and establish their own foothold in the market.
However, the next major hurdle for Bitcoin Dominance lies at an even higher resistance level of 58.1%. If Bitcoin manages to conquer this obstacle, it would undoubtedly cement its position as the dominant force within the market. Such an achievement would likely have profound implications for the broader cryptocurrency landscape, potentially shaping trends and sparking new opportunities for investors and enthusiasts alike.
Above all analysis are showing a potential upward movement for BTC, it is expected to take about 2 or 3 months to hit expected targets because BTC is facing high resistance at $31,000 level and it will take some time to break this resistance and make upward movement.
*Disclaimer: All views expressed in this article is for educational purposes only and should not be constituted as financial advice. This is an opinion article from the author and not necessary CNB.
