Bitcoin price retests the $48,000 level as the bullish pattern signals the end of the correction

Bitcoin price recovery from last week's sell-off with the development of a bullish reversal pattern is triggering a rally higher.

Published 7 hours ago

Bitcoin, the leading cryptocurrency, started the new week with a solid bullish outlook with an intraday price of 2.6% and is currently trading at $43158. This increase has surpassed last week's high, the period that raises major concerns in the market about a possible decline. A look at the daily time frame shows that the Bitcoin price reversal has also developed into a bullish reversal pattern, suggesting that the correction phase is over and the market could trigger another push.

The bullish reversal pattern causes a quick 10% increase in BTC

• Bitcoin price's sustainability above the 38.2% Fibonacci retracement level reflects the larger trend, which remains positive
• A bullish breakout from the inverted head and shoulders pattern presents a long opportunity for pullback traders
• Bitcoin intraday trading volume is $19.6 billion, up 25%.

Bitcoin price| TradingView chart

As Grayscale Bitcoin Trust outflow slows, Bitcoin is surging back above the critical $40,000 level, signaling an impending uptrend. At the start of the week, BTC price recorded 11% weekly growth and is trading at $43,030.

Amid this recovery, the coin price is showing a quick turnaround in market sentiment, supported by price movements on a shorter time frame. With a breakout of the inverse head and shoulders pattern on the 4H chart, the breakout rally suggests a bigger jump.

Furthermore, Bitcoin price is expecting a strong uptrend at the beginning of February given the increasing inflows into alternative spot ETFs such as BlackRock or Fidelity.

As additional confirmation, side traders can wait for the neckline breakout rally to cross the 50% retracement level of the corrective trend at $43,560. This breach of the aggregate supply cap will increase the likelihood of a bull run.

Can Bitcoin price rise back to $49,000?

With the bullish breakout of the inverted head and shoulders line, buyers expect a strong trend in Bitcoin. The post-breakout recovery could target $47,000 with a 10% increase, followed by a fresh rise to a swing high of $49,000.

• Exponential Moving Average (4-hour): The recent jump above the crucial EMAs (20, 50, 100 and 200) provides buyers with additional support in sustaining the currency recovery
• Moving Average Directional Index (Daily): A bullish crossover between the MACD and the signal line reflects that short-term sentiment has turned bullish.

Related articles:

Share this article on:

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps a close eye on the daily price movements of the top assets and indices. Attracted by his fascination with financial instruments, Sahil enthusiastically embraced the emerging cryptocurrency space where he continues to explore opportunities driven by his passion for trading

The content presented may contain the personal opinions of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers