Bitcoin price has recovered from last week’s decline and a bullish reversal pattern has formed, triggering further gains.
Published 2 hours ago
Bitcoin, the leading cryptocurrency, entered the new week with a solid bullish outlook with an intraday price increase of 2.6% and is currently trading at $43,158. This increase exceeds last week’s high, and there is widespread concern in the market that a decline is possible. A look at the daily time frame shows a reversal in Bitcoin price developing into a bullish reversal pattern, suggesting the correction phase is over and the market could trigger another push. doing.
Bullish reversal pattern sets BTC for rapid 10% jump
- Bitcoin price persistence above the 38.2% Fibonacci retracement level reflects that the broader trend remains positive
- Bullish breakout from reverse head-shoulder pattern presents long opportunities for pullback traders
- Bitcoin’s intraday trading volume was $19.6 billion, representing an increase of 25%.
A slowdown in Grayscale Bitcoin Trust outflows has seen Bitcoin re-emerge above the important $40,000 level, hinting at a bullish trend ahead. The week has gotten off to a strong start, with BTC price posting an 11% weekly increase and trading at $43,030.
Amid this recovery, the coin price supports price action on shorter time frames, indicating a rapid turnaround in market sentiment. The breakout rally predicts an even bigger jump due to the breakout of the inverted head and shoulders pattern on the 4H chart.
Moreover, increasing inflows into alternative spot ETFs like BlackRock and Fidelity will likely lead to a strong bullish development in Bitcoin prices starting in February.
As an additional confirmation, sideline traders can wait until the neckline breakout rally crosses the corrective trend’s 50% retracement level at $43,560. This breach of the overhead supply cap will increase the likelihood of a bull market.
Can Bitcoin price regain $49,000?
An inverted head-and-shoulders bullish breakout has buyers anticipating a strong trend for Bitcoin. A post-breakout rally could see a 10% surge towards the $47,000 level, followed by a possible re-challenge of the $49,000 swing high.
- Exponential moving average (4 hours): Recent breakouts above important EMAs (20, 50, 100, 200) provide additional support for buyers to sustain the currency recovery
- Moving average direction index (daily): A bullish crossover between the MACD and the signal line reflects a turn in bullish short-term sentiment.
The published content may include the personal opinions of the author and may be subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.