Bitcoin Breaks the $40,000 Barrier Again
Bitcoin (BTC) hit a record 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 given the currency’s track record of fluctuation.
As a result, this could be the start of a much anticipated period of stabilization for the market’s most important digital asset.
Bitcoin has yet to regain its previous high
The flagship cryptocurrency has yet to regain its 2022 high of $47,800, which it reached on January 1 and 2 — roughly three weeks before plunging to $33,183.
While Bitcoin has flirted with the $40,000 mark several times this year, those growth spurts have yet to prove viable.
This week, however, it has risen again. According to CoinMarketCap, Bitcoin gained about 6.65% in the past seven days and traded at $41,770 at the time of writing, surpassing $40,000 on Friday. Other currencies have also appreciated in recent days.
Retreat to support seen levels
Bitcoin’s price is approaching its upward limit after an almost week-long slow rise. Due to the presence of many obstacles, a pullback to stable support levels for BTC is expected.
Bitcoin’s price is hitting numerous resistance points as it approaches the local high of $45,000. A retest of the bearish break zone between $42,866 and $43,754 is expected to result in a drop 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, BTC price has hit three identical highs and four higher lows. These swing points can be combined to construct an ascending triangle using trendlines.
This technical structure predicts a 20% rise calculated by adding the distance between the first swing high and low at the breakout point of $44,417.
Bitcoin ready for further rally
Given the current geopolitical landscape, rising inflation, interest rate hikes and rising oil prices, many industry specialists are already speculating on Bitcoin price towards the end of the year as many people want a buffer against inflation and a safe haven.
Bloomberg recently reported that despite a massive drop to usher in the year, Bitcoin is poised for additional price gains.
Ethereum is approaching $3K
Meanwhile, Ethereum (ETH) gained ground on Friday after a wild week.
Ethereum is up 5% in the past 24 hours, approaching $3,000 for the first time in two weeks.
Ether’s growth is in part the result of mainnet integration efforts of the Ethereum blockchain and the Beacon Chain.
Related article | Ethereum sees the biggest payouts from exchanges this year – an increase in the ETH price on the horizon?
Featured image of Coingape, chart from TradingView.com