Yesterday, the Bitcoin price increased by 1.29% and currently stands at $39,500. The trading volume also went up and amounted to $34 billion per day. Meanwhile, altcoins showed negative dynamics and declined due to high volatility of Bitcoin. As a result, the Bitcoin dominance exceeded 42% for the first time in 3 weeks.
Let’s take a look at the chart of the first cryptocurrency and try to figure out what direction the price will take in the coming weekend:
Yesterday morning was unremarkable for Bitcoin. But after the American trading session opened, the volatility on the chart increased significantly. At first, the price fell below $39,000 quickly, but then came back almost instantly and even increased to $40,300. However, buyers failed to keep the price above $40,000 and Bitcoin declined once again.
For the last 3 weeks, the price has been moving around $40,000 as bulls and bears have been acting with a varying success. This indicates that neither party currently has a decisive advantage. In this regard, the volatility of Bitcoin is decreasing every day.
At the same time, the chart keeps forming a bullish wedge which we have already mentioned before. According to it, Bitcoin needs to gain a foothold above $40,400. In this case, the price will break the upper border of the wedge and the pattern will start working out.
What also speaks in favour of this scenario is that Bitcoin has been near the lower border of the rising channel for a long time. Bulls maintain this level confidently and do not allow bears to push the price lower. It is likely that right now we are watching a local accumulation here before a new cycle of growth takes place.
We will not probably see any significant movements over the weekend. But already next week, we are waiting for a notable increase in volatility. Moreover, we expect many reversal patterns that have already appeared on the lower timeframes to work out. The nearest target level for Bitcoin is $44,000 – $45,000.