Just days after a technical analyst suggested the Bitcoin BTC/USD chart is “beautifully bullish,” Bitcoin soared beyond $42,000.
Latest Development: Bitcoin rallied 5.6% above the $42,000 mark to wrap up the week on a high. Technical analysts now foresee a move beyond $40,550 triggering a rally to $43,000.
One observer noted that this moment marked the most psychologically challenging day for many individuals, who, after enduring several red days, felt that they had missed out on the green ones.
Liquidation in the past 24 hours reached $43.35 million, with short liquidations comprising the majority ($38.88 million) based on Coinglass data. Additionally, data from Greek Live reported a put-to-call ratio of 0.51, based on 94,000 Bitcoin options set to expire on Jan. 26. This is considered a bullish indicator for the asset.
Also Read: Altcoins Bleeding In Correction Phase: ‘This Is Nothing More Than A Buy The Dip Opportunity,’ Says Analyst
Significance: Despite Arthur Hayes predicting a 30% correction, technical analysts currently hold the upper hand, with Bitcoin reversing some of its losses.
Cryptocurrency analyst Ali Martinez noted that the TD Sequential flashed a buy signal on the daily chart. He added, “An upward move past $40,550 may catalyze an upswing to $43,000.” He also cautioned traders in his tweet.
Positive Outlook: Pentoshi conveyed, “The demand is very real and this all should be viewed as very bullish long term.”
Crypto analyst Michaël van de Poppe highlighted the total crypto market cap, which bounced from a critical area. He added, “It seems likely we’ll continue to $2T in the coming period.”
The global crypto market cap currently stands at $1.62 trillion, up 4.2% in the past 24 hours.
Looking Ahead: Despite the optimism of some technical analysts, not everyone expects a full reversal. Technical analyst CryptoCon stated in his latest tweet, “With 12 other examples, the weekly RSI is due to head to the orange .382 support zone, with prices in the low 30k’s.” The analyst believes the data provided an accurate signal when the price was overheated and anticipates it will do so again when Bitcoin is undervalued.
Meanwhile, Altcoin Sherpa tweeted, “I’m still thinking we head lower in the mid-term and am not opening any fresh positions here. Great moves for some altcoins the last few days but I think it’s best to be cautious.”
Read Next: Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst
Photo: Unsplash
