CoinDesk analyst Omkar Godboul is sure that soon “digital gold” can go above $3,658. This will open the way to the psychological $4,000 mark.
According to him, an upward correction pattern is forming on the daily chart showing that domination of bears is gradually diminishing. This pattern has been forming for quite a long time - over the past six weeks, which indicates its relative reliability.
Currently, Bitcoin is trading at around $3,452, which is about 20% below the December 24 high (near the $4,200 mark).
Daily and 4H charts
On the daily chart, you can see that the price of BTC is trapped within the bounds of the falling wedge pattern. In addition, on the lower timeframe, it can be seen that the price inside the wedge moves in an upward channel.
The probability of a breakdown of the upper boundary of the wedge at around $3450 will decrease if the price breaks through the lower boundary of the channel. Then the price is likely to go to the lower border of the figure at around $3,314
If, however, a breakdown of the upper boundary of the wedge occurs, the way will be opened to the level of $3,658, corresponding to the maximum of the “gravestone doji” candle formed on January 26th.
On a weekly chart, moving averages with periods of 5 and 10 are directed "to the south", signaling a bear market. However, the volumes are falling, which indicates a decrease in sales pressure and a possible forthcoming triggering of the “Falling Wedge” pattern.
Earlier, Omkar Godboul concluded that February is usually a good month for Bitcoin.