Bitcoin Price Prediction: Bitcoin, the largest cryptocurrency by market capitalization, has been showing a strong upward trend since the beginning of December. Bitcoin started the month at $37,656 and saw a significant increase of 17% in just a week, pushing its trading price to around $44,000. A key factor in this uptrend is the recent breakout of the resistance trend line in an expanding channel pattern, which has further strengthened the coin's recovery momentum
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Is BTC Price Ready to Reach $48,000?
- BTC price breaking from the expanding chart pattern signals that buyers are preparing for a robust recovery.
- The rising BTC price could face high supply pressure at $48,200.
- Bitcoin's intraday trading volume is $40.9 billion, up 43.47%.
Bitcoin price prediction | TradingView chart
The rising trendlines of the expanding channel pattern have tracked the Bitcoin price recovery over the past five weeks. Typically, the diverging trend lines in such a pattern indicate increasing uncertainty among market participants.
Nonetheless, BTC price gained significant momentum starting in early December, culminating in a decisive break of the channel's resistance trendline on December 5th. This bullish breakout highlights buyers’ firm determination to continue the current recovery phase.
With BTC price currently hovering around $44,100, the focus is on sustaining these gains. If buyers manage to hold this level, there is a chance that the recovery trend could increase by another 10% and target the next major resistance level at $48,235
Bitcoin's rally was bolstered by $173.88 million in short liquidations
BTC total liquidation chart| Coin jar
In the wake of the current rally, Bitcoin traders have seen a significant increase in short liquidations. According to data from Coinglass, a significant number of short liquidations occurred on December 4th and 5th, totaling around $173.88 million. This significant exit from short traders is likely to bring more buy orders into the market and potentially strengthen the ongoing rally. This influx of buying interest, coupled with the technical breakout, presents a favorable scenario for Bitcoin to continue its upward move.
- Bollinger Band: A rise in the upper boundary of the Bollinger Band indicator reflects the buyers dominating this asset.
- Vortex display. A large gap in the bullish crossover state between VI+ (blue) and VI(-) pink highlights an aggressive recovery trend.
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