Bitcoin may test $41000 level again

29.01.2021 14:47:44

Today's sharp jump in the price of Bitcoin from $32000 to $38000 was not only the result of Elon Musk's tweet but also confirmation of two indicators.

Today's Bitcoin price jump had to happen sooner or later. Perhaps it would not have been so sharp without Elon Musk's tweet, but the price would still have shown an increase.

btcusd-29-jan-chart.jpg

On the 4 hours chart of the BTC/USD pair, the price has formed two bottoms, which have formed a "double bottom". This pattern indicates a rebound in price. However, if the price bounces off the second bottom and closes above the previous peak, its volatility increases. Today, the Bitcoin price has completely fulfilled this model. We saw a candle close above the $34550 level.

Now the $41000 level is once again the target for the Bitcoin price.

In addition to the “double bottom”, a “falling wedge” pattern was formed on the chart. This model predicted a rise to $41000 or higher after the Bitcoin breakout.

According to technical analysis, if a falling wedge forms during an uptrend, it means that the growth will continue, especially when the market is temporarily declining.

At the same time, potential market entry points are located above the upper wedge trend line.

If you look at the Bitcoin price chart, you can see that Bitcoin has implemented this scenario today. The price closed above $36000, a level that has recently limited upside. This indicated a renewed buying enthusiasm above critical price levels.