The current market scenario is very interesting. After struggling at $38k for many days, Bitcoin has finally broken through and is now trading at $38,600. Data also suggests that the price has bottomed out, and $33k could be the low of this correction. The price has confirmed support multiple times at $36k, and this again suggests that Bitcoin could soon move to $40k. Let’s take a look in a little bit more detail on why this could happen.
Bitcoin could soon move to $40k
Let’s start with some news. The US has not increased interest rates this month, Russia is not considering a ban, and India has also not included the crypto bill in the budget session. All this has somewhat subsided the negative market sentiment. So, investors are a lot more bullish than they were a month back.
Coming to the price analysis, let’s take a look at the charts. You can clearly see a pattern forming here. There is the bottom support and the upward resistance. In the upcoming 2-4 days, if Bitcoin is able to break through the resistance, we will easily pass $40k. But the thing to note here is that if we break below the support trendline, there is a chance of falling to $36k-$37k. The RSI is forming a hidden bearish divergence, though, and it will be important to see how that plays out.
Metaverse and the Futures
Recently, Apple announced that they think Metaverse has a lot of potentials, and this helped Meta tokens pump really well. It also helped them in breaking the correlation with Bitcoin. So, the entire market is not bearish as such, and it is clear that Bitcoin could soon follow suit.
The Tether premium has also stayed strong in the past few days. It stood above 99%, which is buying indicator and is opposite to what happened in May 2021 when there was nearly a 4% discount. The CME Bitcoin future premiums also show positive sentiment. In bullish markets, they are priced generally 0.5% to 2% higher than spot, which is the case here. The recovery looks good here, and this could be a strong start for Feb 2022.
What are your thoughts as metrics suggest Bitcoin could soon move to $40k? Are you bullish or bearish for the short term? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.