Bitcoin goes past $40,000 again after falling to $30,000 earlier this week and surpassed key support level in a rally eclipsing the short-term price targets by many analysts so let’s take a closer look at the Bitcoin price news today.
BTC is up by over 14% in the past 24hours as it bottomed to $30,000 earlier this week which later rebounded to $33,000 but now hit $40,000. The cryptocurrency outperformed most other altcoins as the entire capital is once more focused on BTC. The rally in the BTC price comes right after the Grayscale Investments asset fund manager reopened is institutional trusts for the crypto markets and many think that this resulted in a fresh inflow of cash into BTC which is where the recovery comes from.
Analysts said that BTC could face a strong correction form here and one trader predicted even that 2018’s BTC bottom price to 1.5% accuracy about six months in advance and told his followers that the rally seems corrective:
“ok, im out of #btc longs here now aswell, this move up feels corrective, whether it be part of a larger consolidation or a B wave up before another nuke down to 28k im not sure, but im happy to take profit here and watch from the sides for a little while.”
Analysts are confident however but the macro trend remains bullish for BTC. As recently reported, Many traders agreed that the pair will continue lower and will form a head and shoulders pattern which is a bearish reversal structure. The pattern’s technical downside target is below $20,000 which is a move that will take BTC down by more than 50% from the record high of $42,000 that was established back at the beginning of January. Other bearish indicators come from the macroeconomic landscape and the US growth prospects challenged opinions about a longer US dollar bear market. After finishing 2020 down by about 6% the dollar recovered by 1.2% in the first week of this year which forced analysts to rethink their long-term bearish bias.
A day ago, The BTC daily MACD turns red for the first time since bitcoin hit $20,000, recording its biggest red candle in history. Bitcoin started off the year with a sharpest weekly advance and took the asset from $30K to $40K and this number is actually more than double of its former peak since the breakout from $10,000.
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