Bitcoin trend analysis: BTC/USD rides Elon Musk tweet wave to face $40k wall

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  • Bitcoin trend analysis enters bullish zone as BTC breaks descending triangle pattern
  • BTC/USD targets $42,000 highs once again riding a fresh liquidity wave
  • Bitcoin price hovers near upper Bollinger Band in a bid to close above $38,000
Bitcoin trend analysis: BTC/USD rides Elon Musk tweet wave to face $40k wall 1
Cryptocurrency heat map by Coin360

Bitcoin trend analysis is now painting a relatively bullish picture on the charts. The price is charting new highs with an eye on the $40,000 level. At the time of writing, the price hovers near $37,300 with an upward bias on the hourly charts.

For the past few days, BTC/USD has traded in a narrow range resulting in a bearish descending triangle pattern. The price was unable to break out of the triangle on account of low volumes and consolidation. Last Friday, the bulls managed to take the price out of the triangle and back into the bullish territory.

The gradual uptrend has now closed above key resistance at $37,000 on multiple occasions. The upper boundary of the triangle is now below the current price, thereby confirming the hourly charts’ bullish trend. The technical indicators are still away from overbought levels showing the potential for further upside.

Bitcoin price movement in the last 24 hours – $40,000 is now within range

The Bitcoin trend analysis now encompasses numerous bullish signs indicating plenty in store for the BTC bulls. The ascending price channel features many green candles, which signify the foundation or volumes behind the current uptrend. The present bullish momentum also comes courtesy of Elon Musk’s tweets in which he supported cryptocurrencies.

The all-time high of $42,000 doesn’t seem so far-fetched in the current scenario. The BTC/USD pair faces imminent resistance at $38,800 and then further at $40,000 and $40,500, respectively. The bears will likely increase their selling pressure once BTC/USD hits higher levels. Profit booking can also stall the current rally.

In case the breakout in Bitcoin trend analysis proves to be false, the immediate support levels include $37,000 and $35,500, respectively. The .382 Fibonacci retracement is situated at $35,130 to provide massive support in case the price falls. A lot of buying activity may happen near the $35,130 range. In the present context, the .786 Fibonacci retracement of the current rally lies at $39,190 and will pose a significant challenge to the bulls.

BTC/USD 4-hour chart – Bullish momentum gaining ground

Bitcoin trend analysis: BTC/USD rides Elon Musk tweet wave to face $40k wall 2
Bitcoin price chart by TradingView

The RSI figure stands at 60 and displays the potential upside in BTC/USD. The Bitcoin trend analysis on hourly charts further shows that the price is trading above the 100-day simple moving average. In the past two days, the price has traded near the upper Bollinger Band, showing the consistency in buyer’s momentum.

The decisive impulse above $36,000 levels also shows that bulls are in charge of the current price movement. Additionally, the hourly Bitcoin trend analysis shows that a wave three pattern is emerging on the charts, which may eventually push BTC towards the $34,450 support level. The corrective waves can also bring down the price below the $33,000 pivot point. Furthermore, the ‘Stock-to-Flow’ modeling predicts that a short-term bearish move awaits BTC/USD. Traders must exercise caution and avoid excessively long positions until the picture clears out.

Bitcoin trend analysis conclusion – Will the Elon Musk factor count?

For the past year, BTC/USD has obeyed most technical studies. The asset has more or less remained in line with the technical parameters, with industry news making minimal impact on the price. The recent tweets by Elon Musk in which he voiced his support for the crypto has had muted but positive impact on BTC/USD prices.

Despite the rising regulatory frameworks, cryptocurrencies are finding favor amongst the critics. The latest Elon Musk tweets show the changing attitude towards various crypto coins. The present bull trend comes maturely with the price rising in sync with technical parameters. The maturity of Bitcoin is evident in the charts.

If the price manages to close above $37,800, Bitcoin trend analysis will confidently enter the bullish phase. If BTC/USD cannot cross the $38,300 resistance line, the price may undergo a large correction in the short term, where traders can see $35,000 support coming into the picture. As long as the price remains near the upper Bollinger Band, the bulls can rejoice in the brief uptrend.

Source: cryptoslate.com

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