Bitcoin Price Prediction: Throughout 2023, Bitcoin (BTC) investors have witnessed a consistent uptrend, characterized by the formation of a rising wedge pattern. This pattern, defined by two ascending trend lines, has served as a dynamic barrier and support system, fostering a slow but sustainable recovery. A significant contributor to the current buying pressure is the growing anticipation surrounding the approval of Bitcoin spot ETFs. Recently, the BTC price surpassed the upper trendline of this pattern, a move signaling that buyers might be gearing up for a more aggressive rally.
Also Read: Peter Schiff Predicts A Market Crash After Bitcoin ETF Launch
Is BTC Price Heading to $40000?
- An upside breakout from a rising wedge is a rare and stronger signal of rising buying pressure
- Surpassing the 38.2% Fibonacci retracement level reflects the sellers are gradually losing their grip on BTC
- The intraday trading volume in Bitcoin is $17.1 Billion, indicating a 42% loss.
Source-Tradingview
The Bitcoin price entered a stronger phase of recovery around mid-October, bouncing back notably from the $26,600 level. Over the following month, the coin price experienced a bullish surge of 43% and reached a 16-month high at $38,000.
This rise in buying pressure seems to be fueled by substantial accumulation by Bitcoin holders and optimism over potential approvals for all 12 Bitcoin spot ETFs by the US SEC. In this rally, BTC notably broke out from the resistance trendline of the rising wedge pattern. Though the pattern itself suggests an uptrend, a bullish breakout signifies the market’s readiness for an even more robust recovery.
Currently, the BTC is trading around $37,257 and with an intraday loss of 0.3%, it appears poised to retest the breached trendline for potential support. If buyers sustain above this pattern, we might see a further 30% rise, potentially reaching $48,257.
Has the Downtrend Ended?
Along with a bullish breakout of the wedge pattern, the BTC price has also surpassed the 38.2% Fibonacci Retracement Level of the correction trend of the downtrend witnessed from November 2021 to November 2022. This development indicates a growing confidence among buyers, hinting at the initiation of a sustained bull run. However, a breakout above the 50% retracement level($42,800), is still required for better confirmation of this recovery, as surpassing this threshold would significantly weaken bearish momentum.
- Bollinger Bands: The downswing in the upper boundary of Bollinger Bands is a notable concern as it provides strong overhead resistance to BTC Price.
- Moving Average Convergence Divergence: A positive crossover between MACD and Signal line in the bullish territory, reflects a strong recovery sentiment in the market.
