Bitcoin’s price rally, which had stalled at around $38,000 since November 9, is showing signs of an imminent bullish breakout, according to market analysts.
While the upper resistance has capped gains, shallower pullbacks indicate a persistent “buy-the-dip” demand, suggesting a buildup of bullish sentiment.
This pattern, identified as an ascending triangle on price charts, typically concludes with an upward breakout, hinting at Bitcoin potentially surpassing $40,000.
Alex Kuptsikevich, a senior market analyst at FxPro, notes that Bitcoin’s recent price behavior suggests an increasing bullish sentiment. Technical analysis experts Charles D. Kirkpatrick II and Julie R. Dahlquist reinforce this viewpoint, highlighting that ascending triangles usually result in an uptrend continuation.
Data from Skew shows a shift in market sentiment, with unwinding of short positions and increased bullish bets, particularly on platforms like Binance and Bybit.
$BTC Binance & Bybit Open Interest / Delta
Large long opening on binance futures here & large short puked on bybit perpsPerp CVD & Delta
Perp driven price action here clearly from OI & change in perp delta
~ driven by big long opening & short puking in the same timeframe pic.twitter.com/CHs8LGwKjj— Skew Δ (@52kskew) November 24, 2023
This market activity, combined with historical data showing Bitcoin’s average 12% gain in December, sets the stage for a potential rise to around $42,000.
In parallel, Australian crypto market leaders foresee a significant uptrend in crypto investments. The heads of Australia’s largest crypto exchanges, including Independent Reserve and BTC Markets, predict a market upturn in early 2024.
They are preparing for a rapid influx of investments, expecting the business to triple overnight. This bullish outlook is supported by increased user registrations, trading volumes, and institutional interest.
The upcoming Bitcoin halving and Ethereum’s Dencun upgrade further contribute to the optimistic market sentiment.
Despite the bullish indicators, caution remains. Jonathon Miller, Kraken Australia’s managing director, warns of the unpredictability of market phases. Binance Australia emphasizes education and responsible investment to avoid FOMO-driven decisions.
As the crypto market awakens, the blend of technical analysis and market optimism points towards a period of substantial growth and investment opportunities in the crypto sector.