Bitcoin’s price has experienced a positive trend over the past weeks, marked by six consecutive bullish weekly candlesticks since the upward movement commenced in October.
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Throughout November, BTC has been trading within a symmetrical triangle pattern, prompting speculation on whether it will break out or witness a faltering of the upward momentum.
The recent surge in Bitcoin’s price resulted in a new yearly high of $38,437 on November 24, followed by a minor correction. Notably, the technical analysis on the weekly timeframe indicates a swift increase in BTC price since the beginning of October, marked by a breakout from a descending resistance trend line persisting for 530 days.
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An intriguing aspect of this upward movement is the creation of six successive bullish weekly candlesticks, a pattern previously observed in October 2020 during the onset of the last bullish cycle.
In assessing market dynamics, traders commonly refer to the Relative Strength Index (RSI) as a momentum indicator. Currently, the RSI is on the rise but has entered the overbought territory, a scenario reminiscent of October 2020.
Analysts, including JJCycles and Bob Loukas, express optimism about the BTC price trajectory. JJCycles speculates on the potential impact of CME (US institutions) opening longs to hedge for the imminent spot Bitcoin ETF approval, evident in the recent surge in open interest to nearly $4.5 billion on CME.
Bob Loukas shares a similar outlook, anticipating an explosive movement that could break the 30+ day upward-sloping trend resulting from ongoing vertical accumulation.
In contrast, CredibleCrypto predicts an initial drop before BTC resumes its upward trajectory.
Looking at price predictions, the Elliott Wave (EW) theory suggests that BTC is in wave three of a five-wave increase since September. The sub-wave count indicates BTC is currently in sub-wave four, forming a triangle-shaped corrective sub-wave.
A breakout from this triangle could lead to a 10% increase to the next resistance at $41,000, while a breakdown might result in a 6% drop to the closest support at $35,000.
Despite the bullish predictions, caution is advised as a breakdown from the triangle could lead to a 6% drop to the closest support at $35,000.