Cryptocurrency prices ticked up on Friday, especially during the European session, creating a lively buzz across the market as investors felt a significant relief in the wake of a gruesome two weeks. Bitcoin price blasted off from below $40,000 to trade above $41,000 while major altcoins like Ethereum and Solana eased into brief trend reversals to $2,244 and $90, respectively. Avalanche (AVAX) was among the biggest gainers, up 5.7%.
Other altcoins like Polkadot are ready to bounce based on a technical insight shared by the CEO and founder of MN Trading Consultancy.
#Altcoins getting ready for a bounce, in which $DOT is also on the edge of hitting a higher timeframe support level.
I’m accumulating at these regions to make sure that I’ll be positioned for the upcoming upwards run.
$5.60-6.00 needs to hold. pic.twitter.com/yf75bN40ml
— Michaël van de Poppe (@CryptoMichNL) January 26, 2024
The recent surge of optimism hasn’t quite erased the market’s 14% loss since Bitcoin ETFs debuted this month. That means this weekend could be a make-or-break moment for the uptrend. Will Bitcoin prices keep climbing, or will they get stuck bouncing between $40,000 and $42,000?
Recommended: Top 3 Altcoins To Buy Today January 26:ICP, SOL, MATIC
Bitcoin Price Breaks Out But Is Momentum Enough To Sustain Uptrend?
The brief blastoff on Friday came to a sudden halt in the yellow resistance band as shown on the four-hour chart. While the uptick is an optimistic gesture for investors who felt betrayed by the BTC ETFs’ launch, not everyone seems convinced that the downtrend is over.
That said, holding above the immediate support as provided by the 50-day Exponential Moving Average (EMA) (in red) could allow bulls ample time to execute their next strategy.
A daily close above $41,000 would also serve as an affirmation of the bullish comeback and encourage more investors to back the uptrend.
However, traders should take the upswing with a grain of salt for now at least until resistance at $42,000 slightly below the 200 EMA (in purple) is defeated.
Bitcoin price chart | Tradingview
Rekt Capital, a well-known crypto analyst and trader says that the uptick in BTC came unexpectedly, igniting new hope. He added via a post on X that Bitcoin “may very well continue to see-saw in the near-term” encouraging investors to stay the course and focus on the weeks to come.
Yesterday the Q1 Altcoin Hype Cycle was doubted
Today #BTC has moved +3% and suddenly there is new hope
The reality is that Bitcoin may very well continue to see-saw in the near-term but it shouldn’t impact your view on what lays weeks ahead$BTC #Crypto #Bitcoin https://t.co/M5a1T6qxaY pic.twitter.com/qrSWe10ocy
— Rekt Capital (@rektcapital) January 26, 2024
The next few days may help clear the existing uncertainties paving the way for recovery above $42,000 or lead to more pain below $40,000. The area around $36,000 to $38,00 remains of utmost importance. If Bitcoin drops to this range, it would mean a lifetime chance to accumulate ahead of the pre-halving rally.
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The post Bitcoin Price Zooms Past $41k On Friday, Can BTC Rally To $43k This Weekend? appeared first on CoinGape.