Many holders of Bitcoin are enjoying the surge in the value of the digital currency which doubled in value in less than three weeks. Bitcoin which traded at $20,000 three weeks ago surpassed the $40,000 on Thursday.
According to data from Coinmarketcap, BTC traded at $40,114 on Thursday, January 7, 2020 at 7.19 PM. This is the coin’s all time high value in the meantime. But the question in the mind of many market watchers is which direction the coin would head after bridging $40,000 briefly.
At the time of filing this report, there has been a slight correction back to $39,542, which is an indication that the coins need greater bullish support if it would make $40,000 a strong support in the coming days.
A look at the weekly chart for Bitcoin shows that indicators are yet to show signs of a reversal. This means that we may see values more than $40,000 in coming hours or days. However, it is not yet time to be ecstatic considering that volume seems to have tanked in the past few hours. There are indications that the movement could be parabolic in coming days, unless we see more volumes.
$BTC When a weekly chart is looking like this, you either have to find a very precise fibo level or wait for a reversal candle with decent volume to short.
Since I’m not a huge fan of fibo levels, the red candle is what I would look out for.
Long n strong pic.twitter.com/NBJOFzK5BA
— CryptoDude (@cryptodude999) January 7, 2021
The next 12 hours would be critical. In fact, clearer pictures would start emerging to show if the price of BTC, with its 69.5% dominance, would head towards $50,000 in coming days of down to $35,000.