Bitcoin (BTC) reached an all-time high of $68,788 per coin on November 10, 2021.
Since then, the world’s most sought-after cryptocurrency has experienced extraordinary volatility, and the market has appeared reactive and fragile, with the Fear & Greed Index indicating a high level of doubt and uncertainty.
Since January 5, the price of BTC has fluctuated between $35,000 and $45,000, a relatively narrow range considering the currency’s track record of fluctuation.
As a result, this could be the start of a long-awaited period of stabilization for the market’s top digital asset.
Bitcoin Yet To Regain Previous High
The flagship cryptocurrency has yet to reclaim its 2022 high of $47,800, which it achieved on January 1 and 2 — approximately three weeks before plunging to $33,183.
While Bitcoin has flirted with the $40,000 mark on several occasions this year, those growth spurts have yet to prove viable.
However, it has rallied once more this week. According to CoinMarketCap, Bitcoin gained approximately 6.65% in the last seven days and was trading at $41,770 at the time of this writing, surpassing the $40,000 mark on Friday. Other coins have also increased in value during the last few days.
Pullback To Support Levels Seen
Bitcoin’s price is edging closer to its upward limit following an almost week-long slow strut-up. As a result of the presence of many obstacles, a pullback to stable support levels for BTC is anticipated.
Bitcoin’s price is encountering numerous resistance points as it approaches the $45,000 local high. A retest of the bearish breaker zone between $42,866 and $43,754 is expected to result in a downturn to $38,887 and below.
BTC total market cap at $792.68 billion on the daily chart | Source: TradingView.com
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Since January 22, the BTC price has reached three identical highs and four higher lows. These swing points can be combined to construct an ascending triangle using trend lines.
This technical structure forecasts a 20% increase, calculated by adding the distance between the initial swing high and low to the $44,417 breakout point.
Bitcoin Poised For Further Rally
Given the current geopolitical landscape, rising inflation, interest rate increases, and rising oil prices, many industry specialists are already speculating on the Bitcoin price by the end of the year, as many people want a buffer against inflation and a safe haven asset.
Bloomberg recently reported that despite a huge fall to usher in the year, Bitcoin is poised for additional price gain.
Ethereum Nears $3K
Meanwhile, Ethereum (ETH) gained ground on Friday following a wild week.
Ethereum has rallied up to 5% in the last 24 hours, closing in on $3,000 for the first time in two weeks.
Ether’s growth is partly a result of efforts toward the mainnet integration of the Ethereum blockchain and the Beacon Chain.
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Featured image from Coingape, chart from TradingView.com
Source Link: https://www.newsbtc.com/news/bitcoin-breaks-past-the-40000/