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Bitcoin Price Prediction As Bullish Pattern Prepare a Leap Above $40K – Crypto News

Published

2 years ago

October 31, 2023

Dripp

Bitcoin Price Prediction: The formation of a bullish pennant pattern sets the BTC price for a leap of $35000

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Published 37 seconds ago

Bitcoin Price Prediction: The BTC price has displayed a robust uptrend since mid-October, acting as a beacon for renewed optimism across the cryptocurrency market. Rallying from a last-swing low of $26,560, the coin price surged 32.55% to reach a 500-day high of $35,263. However, this rally seems to be encountering supply pressure at the $35,000 level, igniting questions about the sustainability of buying interest.

Also Read: Valkyrie Updates Spot Bitcoin ETF Prospectus With US SEC

Bullish Pattern Prepares the Next Leap

The long-wick rejection candle at $35000 reflects the overhead supply is intense.
A breakout above the pennant pattern would set the BTC price for a quick 6% jump.
The intraday trading volume in Bitcoin is $16.8 Billion, indicating a 13% gain.

TradingView Chart Source-Tradingview

With the newfound supply pressure at the $35,000 level, the Bitcoin price has been trading sideways since last week. This consolidation has created an uncertain market sentiment, leading to a sideways/correction action in several altcoins.

However, a look at the 4-hour time frame chart shows the wavering BTC price is shaping into a bullish continuation pattern called pennant. Interestingly, this pattern is often spotted in an established uptrend, allowing buyers to recuperate the bullish momentum for the next leap.

Thus, until the two converging trendlines of this pattern are intact, the coin is likely to prolong its current consolidation. Thus, the Investors eager for the next long opportunity should watch for a breakout above the pattern’s upper trendline.

Such a breakout could unleash the build-up of bullish energy, propelling Bitcoin for a swift 6% advance to approximately $36,500. A more ambitious target would be the pole length of this pattern, suggesting an extended rally could reach a high of $42,000.

Is BTC Price Under Correction Threat?

While the near-term outlook seems bullish, it’s essential to note that the BTC price is hovering around a long-standing resistance trendline within a channel pattern. Historically, retests of this line have often led to increased supply pressure and significant price corrections. Therefore, any movement around this resistance could wield a significant influence over this coin.

Moving Average Convergence Divergence: Currently in a bullish crossover, with the MACD line surpassing the signal line, suggesting that the overall trend remains on the bullish side.
Relative Strength Index: The daily RSI is at an overbought level of 81, suggesting that a minor pullback or consolidation could be beneficial for the asset’s overall bullish health.

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