As Bitcoin failed to provide a lower price discount, the price continued to break higher – registering a total of 50% gain in the last 30 days. More rallies are expected if it keeps breaking higher.
Bitcoin advanced rally last week after staying in a three-week consolidation phase. It entered this week strong and continued to paint a greenish scenario across major timeframes.
Leaving several key supports untested on the downsides, BTC tapped $42,154 today and retraced to where it’s changing hands around $41,890.
However, it is essential to note that the crucial $30,000 level, which BTC failed to retest during October’s surge might come into play as a major retest level when the price corrects lower. The broken ascending channel may serve as support if the price pulls back slightly.
Such action is most likely to come unexpectedly soon, especially with the recent surge in volatility, which appeared to have reached an overbought zone on the 4-hour.
On the hourly chart, BTC is forming a double-top pattern, signalling a potential drop. If the price continues to increase by the day, we can expect more rallies to play until it encounters a solid resistance level.
The trend remains bullish on the daily chart. While the fear and greed index stands at 75, BTC dominance has increased to 53.2% following a 22% surge in the last month.
Bitcoin’s Key Levels To Watch
From the look of things, Bitcoin’s price may hit $44,000 before the end of this week. Before that can happen, it must retake the current daily high of $42,154 and $43,000 to validate more increases.
A pullback from the current trading level could drive the price briefly to $41,000 and perhaps the important $40,000 support. A dip below this support could bring the price to $38,500 in no time.
Key Resistance Levels: $42,154, $43,000, $44,000
Key Support Levels: $41,000, $40,000, $38,500
- Spot Price: $41,891
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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