Bitcoin Price Analysis: BTC Near $40K; Will it Show Correction?
- 1 Bitcoin price prediction for December suggests that the BTC rally will sustain above $40K.
- 2 BTC price is in a strong uptrend and there is no sign of weakness, yet.
- 3 Cryptocurrency market leader BTC is trading near its May 2022 High.
Bitcoin price prediction is that a bull run has begun and significant rise in the price may be visible in coming months. BTC crypto is forming a strong bullish continuation pattern.
The buyers continue to dominate on the the support levels. A minor sell off is imminent. However, investor confidence is clearly high for Bitcoin.
In November, BTC price consolidated for a few days in the range between $35,600 to $38,000. This consolidation can be interpreted as short term base formation during which selling pressure was absorbed.
Slowly and steadily, BTC crypto continued to rise and succeeded to take control in the $38K supply zone. In the beginning, buyers finally succeeded to break the $38K barrier and pushed the price toward 39,000.
The 50 day and 200 day EMAs is sloping upwards, but the price is trading far away from the EMA. So, a short term retracement to the 50 day EMA is expected in the coming months. However, as of now BTC price action does not show any sign of weakness.
Bitcoin Price Near $40K; What Might be the Next Move?
Bitcoin price rose 4% in just three trading sessions in December and sustained above $39,000. It shows that the aggressive buyers are getting active and preparing to break the $40K barrier.
If they succeed, then BTC price might display a sharp rise which will attract the new participants in the market. However, if the BTC crypto price faces rejection at the $40,000 level, then a minor correction is likely.
On the downside, the $38,000 and $36,000 range will act as a demand zone for the bulls. The analysis suggests that this crypto is in an uptrend, so investors and traders should loook to buy on dip opportunities.
BTC Price is in the Initial Phase of Bull Run
BTC price is in the initial phase of a bull run and is forming bullish chart pattern on multiple time frames. In the last two months, Bitcoin price had rallied 40% approx which shows the strength of the bulls.
The price action suggests the rally might continue in December and a new swing high may be visible. However, if the price shows a correction, then theh downside looks limited to $35,600. So, it’s better to play bullish bets in BTC and participate in the bull run.
Bitcoin price prediction suggests a rise and that the $40,000 will be broken in December 2023. The chart pattern of BTC crypto is bullish on multiple time frames so more upward momentum is possible. Per the analysis, the probability of correction in BTC price is low. However, if it is triggered, then $35,600 will act as a strong support.
- Resistance levels: $40,050 and $42,987
- Support levels: $35,603 and $34,001
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.