Bitcoin is still trading below $ 40,000, but there are signs that the cryptocurrency could soon target the next resistance at $ 43,000.
After last week’s heavy crash, Bitcoin experienced a rally this week. The leading cryptocurrency rose over 37% from last week’s lows. However, the rally has stagnated as Bitcoin has been unable to overcome the $ 40,000 range in the past 24 hours.
Nevertheless, the upward trend in the market. Several analysts are convinced that BTC could rise to $ 43,000 in the coming hours or days.
Bitcoin Price Forecast
After the leading cryptocurrency crashed to its lowest level in several months last week, now the 4-hour chart of the BTC/USD pair shows an impressive recovery. The pair climbed higher, again testing the big resistance at $ 40,000, rising above the 23.6% Fibonacci retracement range.
In addition, it is at the same level as the 25 – and 15-day EMA (exponential moving average). The BTC / USD pair is currently forming a reverse shoulder-head-shoulder formation-a bullish signal. The formed, also bullish, flag formation may indicate that the bulls are targeting the next resistance at $ 43,174. In the event of another rally, the BTC / USD pair could test another large resistance level at $ 45,522.
4-Hour Chart BTC / USD. Source: Coinalyze
However, Bitcoin is currently trading above $ 38,000. A dip below $ 36,000 would invalidate the bull signal and allow the bears to regain control of the market. In the event of a prolonged sell-off, the BTC/USD pair could drop below $ 35,000 for the second time in two weeks. Bitcoin’s technical indicators are trying to break out of their bearish trend. If this does not succeed, the losses of the past week could be heavier again.