Key Takeaways:
- Bitcoin price is signaling a bullish breakout above the $38,000 zone.
- BTC/USD cleared a key bullish pennant with resistance at $37,600 on the daily chart.
- The price could rally over 10% and drift toward $40,000 or even $42,000.
Bitcoin price is gaining pace above the $38,000 zone. BTC/USD completed a bullish pattern, which could lead it toward $40,000 in the near term.
Bitcoin Price Signals Bullish Breakout
In the past Bitcoin price prediction, we saw a decent increase above the $36,500 resistance zone. The BTC/USD pair gained strength above $37,500, but the bears remained active near the $38,400 resistance zone. The pair started a consolidation phase below $38,400.
More importantly, we saw a bullish pennant with resistance at $37,600 on the daily chart. The bulls protected heavy losses below the $36,000 support zone and the price stayed above the 50-day simple moving average (blue).
Recently, MicroStrategy acquired an additional 16,130 BTC for roughly $593.3 million at an average price of $36,785. They now hold 174,530 BTC at an average price of $30,252. Bitcoin gained strength and climbed above the same bullish pennant. It is now consolidating above the $38,000 resistance zone and signaling a bullish breakout.
On the upside, the first resistance sits near the 1.236 Fib retracement level of the downward move from the $37,974 swing high to the $34,779 low at $38,728. The next key resistance for the bulls might be near the $40,000 handle.
The 1.618 Fib retracement level of the downward move from the $37,974 swing high to the $34,779 low is also $39,948 to act as a resistance. If Bitcoin bulls pump it above $40,000, the price could drift toward the $42,000 level in the coming days.
Another Rejection in BTC?
If Bitcoin price fails to resume its rally above the $38,400 zone, there is a risk of a fresh decline. Immediate support is near the $37,550 level and the pennant resistance (now support).
The first major support is near the $36,400 level and the pennant lower trend line. A close below the $36,400 support might increase selling pressure. In the stated case, the price may perhaps decline toward $35,000 or the 50-day simple moving average (blue). Any more losses might open the doors for an extended downside correction toward the $31,500 level.
Overall, Bitcoin price is signaling an upside break above the $38,000 zone. If BTC clears the $38,400 hurdle, it could start a fresh increase toward $40,000 or even $42,000. If not, it might start another decline toward the $36,400 support.
