Bitcoin (BTC) reached an all-time high of $68,788 per coin on November 10, 2021.
Since then, the world’s most sought-after cryptocurrency has seen extraordinary volatility, and the market has appeared reactive and fragile, with the Fear & Greed Index indicating a high level of doubt and uncertainty.
Since January 5, the price of BTC has fluctuated between $35,000 and $45,000, a relatively narrow range given the currency’s history of fluctuation.
As a result, this could be the start of a long-awaited period of stabilization for the market’s premier digital asset.
Bitcoin has yet to recover to its previous high
The flagship cryptocurrency has yet to recover its 2022 high of $47,800, which it hit on January 1-2 – about three weeks before plunging to $33,183.
Although Bitcoin has flirted with the $40,000 mark several times this year, these growth spurts have yet to prove viable.
However, it recovered again this week. According to CoinMarketCap, Bitcoin has gained around 6.65% over the past seven days and was trading at $41,770 at the time of this writing, breaking above the $40,000 mark on Friday. Other coins have also risen in value over the past few days.
Pullback to Support Levels Seen
Bitcoin price is approaching its upside limit after being slow for almost a week. Due to the presence of many obstacles, a return to stable support levels for BTC is expected.
Bitcoin price encounters numerous resistance points as it approaches the local high of $45,000. A retest of the bearish breakout zone between $42,866 and $43,754 should lead down to $38,887 and below.
BTC total market cap at $792.68 billion on the daily chart | Source: TradingView.com
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Since January 22, the price of BTC has made three identical highs and four higher lows. These oscillating points can be combined to construct an ascending triangle using trendlines.
This technical structure calls for a 20% increase, calculated by adding the distance between the initial swing high and low at the breakout point of $44,417.
Bitcoin ready for a new rally
Given the current geopolitical landscape, rising inflation, rising interest rates and rising oil prices, many industry insiders are already speculating on the price of Bitcoin by the end of the year, as many people want a buffer against inflation and a safe haven asset.
Bloomberg recently reported that despite a huge drop to usher in the year, Bitcoin is poised to gain further price.
Ethereum nears $3,000
Meanwhile, Ethereum (ETH) gained ground on Friday after a crazy week.
Ethereum has risen as much as 5% in the past 24 hours, approaching $3,000 for the first time in two weeks.
Ether’s growth is partly the result of efforts to integrate the Ethereum blockchain mainnet and the Beacon Chain.
Related Article | Ethereum Sees Biggest Exchange Drawdowns This Year – ETH Price Rise In Sight?
Featured image from Coingape, chart from TradingView.com
