Bitcoin Price Forecast: The bullish breakout in the upward wedge shape reflects the possibility of the recovery shifting to a faster gear.Bitcoin Price Forecast: Throughout 2023, Bitcoin (BTC) investors have witnessed a sustained upward trend, characterized by an upward wedge pattern
Bitcoin Price Forecast: The bullish breakout in the upward wedge shape reflects the possibility of the recovery shifting to a faster gear.
Bitcoin Price Forecast: Throughout 2023, Bitcoin (BTC) investors have witnessed a sustained upward trend, characterized by an upward wedge pattern. This pattern, defined by two upward trend lines, serves as a dynamic barrier and supporting system, promoting a slow but sustainable recovery. An important reason for the current purchasing pressure is the increasing expectation of approval for the spot ETF of Bitcoin. Recently, Bitcoin prices have exceeded the upper trend line of this pattern, indicating that buyers may be preparing for a more aggressive rebound.
Will Bitcoin prices rise to $40000?
- The upward breakthrough of an upward wedge is a rare and strong signal of rising purchasing pressure
- Breaking through 38.2% Fibonacci's pullback reflects that sellers are gradually losing control of BTC
- Bitcoin's intraday trading volume was $17.1 billion, down 42%.
Source Tradingview
Bitcoin prices entered a stronger recovery phase around mid October, rebounding significantly from the level of $26600. In the following month, prices experienced a 43% bullish surge and reached a 16 month high of $38000.
The massive hoarding of Bitcoin holders and optimism that the US SEC may approve all 12 Bitcoin spot ETFs seem to have exacerbated the rising purchasing pressure. In this rebound, BTC clearly broke through the resistance trend line of an upward wedge shape. Although the pattern itself indicates an upward trend, a bullish breakthrough means that the market is ready for a stronger recovery.
At present, the BTC trading price is approximately $37257, with a 0.3% intraday decline. It seems that they are preparing to retest the breakthrough trend line to seek potential support. If buyers stay above this model, we may see a further increase of 30%, which may reach $48257.
Has the downward trend come to an end?
With the bullish breakthrough of the wedge shape, Bitcoin prices have also exceeded the 38.2% Fibonacci retracement of the downward trend correction trend from November 2021 to November 2022. This development indicates that buyer confidence is constantly increasing, indicating that Bitcoin is about to start rising. A sustained bull market. However, in order to better confirm this recovery, it is still necessary to break through the 50% retracement level ($42800), as breaking this threshold will significantly weaken the bearish outlook.
- Bollinger Bands: Bollinger BandsThe decrease in the upper limit is a noteworthy issue as it provides strong overhead resistance to BTC prices.
- MACD(MovingAverageConvergence Divergence):The positive intersection of MACD and signal line in the bullish region reflects the strong recovery sentiment of the market.
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