Crypto News

Bitcoin Aims to Capitalize on Musk and Wedge; $40,000 Next?

Bitcoin prices climbed Monday, suggesting the benchmark cryptocurrency will recover some of its gains following its decline from its record high near $42,000.

The BTC/USD exchange rate was up 1.49 percent ahead of the New York opening bell, trading for $33,630 after correcting lower from its intraday peak of $34,728.

The gains primarily appeared after Tesla and SpaceX founder Elon Musk openly proclaimed that he supports Bitcoin, adding that he is “late for the party” and should have purchased the cryptocurrency eight years ago.

Bitcoin Bullish Indicators

Traders flocked into the Bitcoin market after Mr. Musk’s comments went viral across social media. Nevertheless, profit-takers took control of the market, pushing prices back lower below in the $33,000-34,000 range.

Bitcoin maintains intraday gains despite choppiness. Source: BTCUSD on TradingView.com
Bitcoin maintains intraday gains despite choppiness. Source: BTCUSD on TradingView.com

Meanwhile, the recent pullback from the vicinity of the $34,000-mark also confirmed a downward sloping line as resistance. The mentioned trendline, coupled with another falling support line, constitutes the formation of a Falling Wedge on daily charts.

Falling Wedges are bullish reversal patterns and a sustained breakout above their resistance trendlines lead the price higher by as much as the maximum Wedge height. In Bitcoin’s case, the distance between upper and lower Wedge trendline ranges from $10,000 and $12,000.

Bulls might attempt to achieve a close above Wedge resistance before eventually pushing the price above $40,000. The positive momentum could further stretch their target towards the mid-$45,000.

That said, technical indicators on the daily chart have still to confirm a bullish bias. Meanwhile, they warrant caution about potential pullbacks towards the Wedge support, followed by a negative breakout. It would eventually invalidate the entire bullish reversal theory.

The Bitcoin price may then weaken towards the lower $27,000 for a potential rebound move. That also serves as the horizontal resistance, which, if coupled with the Wedge resistance trendline, makes a Descending Triangle pattern.

In that case, the downside target would shift to below $20,000.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

0 Comments
Inline Feedbacks
View all comments
Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Crypto News

PlayStation 5 Ethereum Mining Rumor Proven To Be False
A photo of what looks to be a PlayStation 5 hacked to mine Ethereum, with a hashrate of 98.76...
BlockFi Announces Record Payments For Clients In February
Crypto lending firm BlockFi posted another record-breaking month in February. The firm paid out over $35 million in interest...
Tezos Integrated Into Wolfram Blockchain Platform
Wolfram Blockchain Labs announced that its DLT will utilize the blockchain resources of TQ Tezos. Tezos blockchain is now...
Citigroup Believes Bitcoin Could Become Global Currency
According to a recent report published by Citigroup, Bitcoin could one day emerge as the global currency.
Twitter Buying Bitcoin?Raises $1.25 Billion In Convertible Notes
Is Twitter buying Bitcoin? Twitter announced that it has raised $1.25 billion in convertible notes. Giving some the impression...
Bitcoin Rallies Back Towards $50,000 As Bond Sell-Off Cools Off
Bitcoin bounced back, almost hitting $50,000 after last week's turbulent trading, triggered by a sell-off in the US Treasurys...

Featured Crypto News

BlockFi Announces Record Payments For Clients In February
Crypto lending firm BlockFi posted another record-breaking month in February. The firm paid out over $35 million in interest...
Tezos Integrated Into Wolfram Blockchain Platform
Wolfram Blockchain Labs announced that its DLT will utilize the blockchain resources of TQ Tezos. Tezos blockchain is now...
Twitter Buying Bitcoin?Raises $1.25 Billion In Convertible Notes
Is Twitter buying Bitcoin? Twitter announced that it has raised $1.25 billion in convertible notes. Giving some the impression...
Bitcoin Rallies Back Towards $50,000 As Bond Sell-Off Cools Off
Bitcoin bounced back, almost hitting $50,000 after last week's turbulent trading, triggered by a sell-off in the US Treasurys...
Bitcoin Price Surges After MicroStrategy Increases BTC Holdings
The price of Bitcoin shot up 7% on Monday following MicroStrategy's announcement. That is purchased an additional $15 million...
Cardano To Update Mary Protocol On March 1
Cardano’s core development team announced that the Mary protocol update will go live on March 1. Input Output also...