In a surprising turn of events, Bitcoin (BTC) has once again defied expectations by reaching a new yearly high, igniting speculation about whether it can break the $40,000 milestone.
After a brief consolidation phase, the leading cryptocurrency has regained its bullish momentum, soaring to a peak of $38,000 before retracing to its current trading level of $36,400. As the market eagerly awaits the next move, experts and analysts weigh in on Bitcoin’s potential to sustain its upward trajectory.
The Birb Nest team provides valuable insights into the short-term scenarios for Bitcoin. From a fundamental perspective, the anticipation of ETFs (Exchange-Traded Funds) and the upcoming halving event contribute to the current drive and support the bullish sentiment in the market.
Moreover, from a technical standpoint, Bitcoin’s recent breakthrough of $32,000 has its sights set on the key psychological level of $40,000, bolstered by the presence of the Golden Cross and a rising 200-day simple moving average (SMA).
The Golden Cross, a bullish technical pattern formed when a short-term moving average crosses above a long-term moving average, has played a significant role in Bitcoin’s recent surge.
Combined with the rising 200-day SMA, which indicates a strengthening long-term trend, these indicators reinforce the ongoing uptrend and provide a strong foundation for Bitcoin’s potential upward movement.
According to the Birb Nest team’s analysis, Bitcoin’s price action suggests an imminent increase in volatility, as indicated by the bullish Fear & Greed Index registering at 68.
After experiencing a 27% jump in October, surpassing the historical average, November historically exhibits robust gains of over 40%, potentially propelling Bitcoin toward $50,000.
Notably, the second half of the month tends to be more bullish, heightening the anticipation for further price appreciation.
According to a recent post on X (formerly Twitter) by the crypto expert Michael Van De Poppe, $38,000 to $40,000 represents a critical resistance zone for Bitcoin.
This means that price levels within this range will likely face significant selling pressure and challenge Bitcoin’s upward momentum. Van De Poppe warns against expecting an immediate breakout above this resistance level, suggesting that consolidation beneath it is a more probable scenario.
Van De Poppe emphasizes the importance of consolidation beneath the resistance zone. Van De Poppe suggests that such consolidation provides a healthy base for Bitcoin’s price to gather strength before attempting a breakthrough.
By stabilizing within this range, Bitcoin builds a stronger foundation to support a potential bullish move in the future.
Regardless of the forecast, the cryptocurrency’s upcoming price action remains to be seen if it will be accompanied by consolidation and a subsequent breakout or if Bitcoin is inclined to test lower support levels before embarking on another bullish move.
Featured image from Shutterstock, chart from TradingView.com
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