Bitcoin is currently consolidating at around $38,000 after a remarkable recovery that saw it bounce from the low $30,000 region to as high as $40,100 on Thursday.
The world’s largest cryptocurrency is now on the brink of a major breakout to print an all-time high above $41,000, although it’s worth noting that weekend price action is typically volatile as a result of CME futures being closed.
While Bitcoin remains bullish on all higher time frames, it will likely retest the breakout level at $35,000 over the weekend to form another higher low.
Bitcoin would enter a bearish phase if it slumps below $30,000, as this would form the first lower low since the rally began in early December.
However, for the time being all momentum oscillators and technical indicators are pointing towards continuation to the upside, with price targets beginning to emerge around the psychological level of resistance at $50,000.
Daily stochastics recorded its first bullish cross since early December yesterday evening while the Relative Strength Index (RSI) is also making a positive slope to the upside.
It’s worth noting that while Bitcoin’s chart presents a positive outlook, there is a series of news events that may influence price action over the coming weeks.
Today, January 15, Tether is required to submit information to the New York Attorney General’s Office in regards to a loan documents relating to an alleged $850 million cover-up.
A negative outcome to the case could put Tether, which has a market cap of $24 billion, under serious pressure from global regulators and lawmakers.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.