- Bitcoin trend analysis turns bullish as institutional buyers lead the way
- BTC/USD comes close to an all-time high of $42,000 and set to sail higher
- Frenzied buying and thin weekend liquidity propel the price to new peaks
- Technical indicators have not overheated yet on the hourly charts
The bullish overtone in Bitcoin trend analysis seems to carry on unabated as the bulls charge ahead. The BTC/USD price has crossed $40,000once again after the January highs. The weekend price action is getting increasingly impressive as Bitcoin again approaches the all-time high figure of $42,000. The pair has recovered from its recent correction after the January highs.
At the time of writing, the price of Bitcoin is hovering near $40,256. More importantly, the price is pushing near the Bollinger Bands’ upper boundary and within striking distance of the all-time peak. The BTC/USD is set to revisit the January 8 highs once again on the back of strong technical indicators, large volumes, and overall positive sentiment in the crypto sphere. The spectacular journey that began last year is all set to continue higher into uncharted territory for Bitcoin trend analysis.
In the past few days, Bitcoin trend analysis has been trading sideways but with an upward bias. The price makes a string of higher lows that are pushing the support levels underneath to higher price pivots. Today’s rise comes on the backdrop of constant accumulation that happened near the $36,700 support zone. In 2021, the BTC/USD pair has risen by almost 36.9 percent.
Bitcoin price movement in the last 24 hours: Bulls refuse to back down
As per Bitcoin trend analysis, the buyers are facing upper resistances head-on by challenging the peak of the Bollinger Bands repeatedly. Besides day traders and investors, BTC whales and institutional support help the price rise to new heights. From MicroStrategy to Bridgewater Associates, major financial players’ large scale investments are providing the much-needed liquidity to the BTC price action.
Institutional players are known to make investments based on sound technical and fundamental analysis. Add to this the positive technical indicators and Bitcoin trend analysis in turning overly bullish. Moreover, analysts from Bridgewater Associates predict future BTC prices at $85,000, almost double the current price.
In the last 24 hours, BTC/USD has increased by 6 percent by surging close to $2,000 in value. The resistance at $40,000 is providing a minimal challenge to the bulls. The price must close above this crucial psychological resistance to further prop up the uptrend. Today’s uptick has helped BTC end the recent consolidation phase that saw the price break away from the descending triangle pattern.
The bearish descending triangle pattern is resting comfortably below the price and near the 9-day exponential moving average. The buyers have maintained the volumes required to float the price above key moving averages, including 100-day SMA and 50-day SMA. Thus, the bullish momentum has well-defined support underneath at $38,100 and $37,500, respectively.
BTC/USD 4-hour chart: Technical indicators overheating on hourly charts
The newfound buying momentum is now heating the technical indicators. The RSI has touched the 70 mark, and the MACD is also showing an overbought tendency. The crossover is starting to emerge on the MACD indicator. The 0.886 Fibonacci resistance at $40,510 is providing short-term support to the price. The upcoming resistance at $42,000 remains the key to BTC‘s uptrend.
As we advance, the resistance at $42,250 signifies the 1.414 Fibonacci retracements of the present bull rally on the daily charts. The buyers have to maintain the present momentum to cross the $44,300 resistance that is the 1.618 Fibonacci extension of the BTC/USD bull run. Once it closes above these key resistances, the price will be set to chart a $47,500 course.
On the downside, significant support is being built near the $40,000 region. Further down south, the price will find cushioning at $39,150 and then at $38,500. The 0.382 Fibonacci retracement at $37,290 will provide massive support if the price falls abruptly.
Bitcoin trend analysis conclusion: Bull run continues to defy resistances
The current bull run comes amidst thin weekend volumes. Ever since BTC/USD broke past the $35,000 resistance, the price has maintained a gradual uptrend. Bitcoin dominance remains a key driving force behind the current price rise. Moreover, the altcoin rally is further fuelling the BTC/USD rise.
As BTC goes parabolic, the altcoins have begun hitting all-time highs. The overall bullish sentiment in the market helps the Bitcoin trend analysis gain more footing in the bullish zone. The current rally may undergo some minor correction in the short-term, but the overall BTC trend remains overly bullish to touch the $47,000 level next.