Bitcoin price prediction: BTC is on the cusp of a bullish breakout
- Bitcoin price is in a holding pattern slightly below the $40,000 resistance level.
- The pair has formed a falling wedge and double-bottom pattern.
- We explain why the coin will soar during the weekend.
The Bitcoin (BTC/USD) price is hovering near a key resistance level as investors continue reflecting on the Federal Reserve and cues from Amazon. The coin is trading at $39,800, which is slightly below the important resistance at $40,000.
BTC finds strong resistance
The Federal Reserve concluded its July monetary policy meeting on Wednesday. As was widely expected, the bank decided to leave interest rates unchanged between 0% and 0.25%. It also said that it will start talking about tapering in the next few meetings, presumably in December. Analysts expect that the bank will start tapering in January.
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The Fed is an important entity in the cryptocurrencies market. For one, the bank has been credited for help push cryptocurrencies to a record high by lowering interest rates and embracing an expansionary policy. Therefore, with the number of Covid cases rising, some investors believe that the bank will extend its dovish tone.
The Bitcoin price is also steady after more companies expressed their support for the coin. For example, in its quarterly earnings, PayPal said that it was building a crypto super app. This app will help people buy, send, and receive Bitcoin and other altcoins. At the same time, the firm said that it is planning on expanding its crypto services to the UK.
PayPal is not alone. In a statement last week, Elon Musk said that SpaceX had also invested in Bitcoin. This was the first time he confirmed that the company had indeed acquired the coin. Tesla and Tesla also maintain their Bitcoin holdings. Further, in a statement, MicroStrategy said that it was considering adding into its Bitcoin investments. This is despite the fact that the company has already lost more than $400 million.
Bitcoin price prediction
Meanwhile, the Bitcoin price has also rebounded because of technicals. A look at the daily chart shows that the coin made a double-bottom pattern at around $29, 200 level. In technical analysis, a double-bottom is usually a bullish factor.
At the same time, the coin formed a falling wedge pattern, which is also a bullish signal. This week, it moved above the upper side of the falling wedge pattern. It has also moved above the 25-day and 50-day moving averages.
Therefore, a closer look at the chart shows that it needs to cross the key resistance at $41,282 to confirm the bullish view. If this happens, the next key resistance level to watch will be $44,000.
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