The cryptocurrency market has recently displayed a bullish trend, with a significant upswing in most major cryptocurrencies. Bitcoin, the leading cryptocurrency, has particularly stood out, escalating from $40,542 to $44,228, marking a notable 9% gain over the week. This uptick suggests that Bitcoin might be exiting its recent correction phase, opening the door to a potential recovery. The key question is whether this upward momentum can sustain and propel Bitcoin towards the $50,000 mark in the upcoming weeks.
Also Read: Bitcoin ETFs Set to Boost Retail Investment, Says Crypto Veteran
Is Bitcoin Price Ready for $50000?
- The formation of the Doji candle in the daily chart shows the BTC price is witnessing supply pressure at $44800
- The coin price trading above the daily EMAs(20, 50, 100, and 200) indicate the overall trend as bullish
- The intraday trading volume in Bitcoin is $15.3 Billion, indicating a 3.5% gain.
The Bitcoin price had been largely stagnant for about three weeks, casting a shadow of uncertainty over the crypto market. However, this recent recovery follows an 8-week rally, implying that the pause in the bullish trend might have been a period for buyers to regroup and gather strength.
The formation of a pennant pattern, a common trend in technical analysis marked by converging trend lines enclosing a narrowing price range, has been observed during this phase. This week’s bullish turn for Bitcoin is largely attributed to significant developments, such as the meeting of Bitcoin exchange-traded funds (ETFs) applicants with the U.S. Securities and Exchange Commission and Argentina’s official recognition of Bitcoin as a currency.
On December 20th, the Bitcoin price broke through the resistance trendline of the pennant pattern, hinting at a continuation of the recovery trend. The post-breakout rally has pushed the coin price to around $44,043.
Despite this, the presence of neutral candle formations in recent days indicates lingering uncertainty in the market. Yet, according to the pennant pattern, The BTC price could aim for an initial target of $44,700, followed by an extended recovery potentially reaching $53,380.
BTC vs ETH Performance
December has seen high volatility across the cryptocurrency market, with major coins like Bitcoin and Ethereum experiencing fluctuations. A comparative analysis shows that the ETH price has been more affected by the uncertainty, displaying lower highs and lower lows. Nevertheless, both cryptocurrencies’ retracement above key Fibonacci retracement levels suggests that the overall bullish trend remains intact, albeit with ongoing market fluctuations.
