Bitcoin’s trading volume has increased by 15% in one day and amounted to $28 billion. Let’s take a look at the Bitcoin chart and try to figure out the direction it may take next:
Over the past 4 days, Bitcoin has already grown by 12% and now it is trying to gain a foothold above the $51,000 mark. Thanks to this rally, the chart finally broke the level where Bitcoin had stayed in the last 3 weeks.
Two days ago, we mentioned that the chart had eventually formed the falling wedge pattern, which indicates an upcoming reversal. Bitcoin couldn’t surpass the upper border that time, but managed to do it yesterday. Thus, this pattern began to work out and the current growth is just the beginning. According to this fractal, the target price that Bitcoin will try to reach first is $54,000.
As we can see from the chart, the $54,000 mark is strong enough. This is exactly where the local support level was formed in early December, and the price of Bitcoin fell by 20% after breaking it. In addition, the previous uptrend line favors the importance of this level, which would also be a significant resistance area if Bitcoin hit it.
Moreover, there was a much more important event that affected the chart. Bitcoin left the descending channel and consolidated above it, which primarily signals for a definitive trend reversal. Due to this factor, the price is likely to rise further.
Many indicators have already left the overbought zone and are currently moving upward. This concerns such oscillators as MACD, RSI, and other less popular ones. Therefore, there is still significant room to keep growing.
Based on all the above mentioned factors, we can conclude that Bitcoin will continue to grow to the first target price level of $54,000 – $55,000 in the near future. Most likely, the price will stagnate around this level for a while. At the same time, there is always the possibility that Bitcoin will soar to an even more global resistance mark of $60,000. We assume that this is where Bitcoin will be heading in the next couple of weeks.