According to Bloomberg, a technical indicator suggests the bitcoin price is en route to achieving $44,000 in the near term.
Bitcoin Eyes $44,000 Next
There has been a lull in the bitcoin price throughout the past three months. Some pundits became cautious on the prospect of the crypto market due to the prolonged sideways movement of the flagship cryptocurrency until last week when BTC swiftly rebounded from around $29,500 to above $30K.
The cryptocurrency managed to ascend to $36,000 before hitting $39,800 earlier today on Amazon rumors. As ZyCrypto reported earlier, an Amazon insider indicated that the e-commerce giant will soon allow its users to pay in bitcoin and other cryptocurrencies, which ignited a surge toward $40,000.
Bloomberg analysts noted that this huge price move confirmed a key price indicator, the classic double-bottom pattern. According to the chart they shared, this pattern builds a strong base for a rally towards $44,000.
The strategists note that the $41,000-$42,000 zone will be the only resistance level that may slow down bitcoin’s rally towards $44K. With bitcoin now retesting the $40,000 area, the next move after that will determine whether the cryptocurrency finally recovers from the vicious bear market of the last three months.
The Most Critical Variables In The Short-Term
Another analyst going by the alias Crypto_Ed_NL has observed that the continuation of the bull rally would not be without its hurdles — and a downward move to $29,000 could still be on the table after hitting $42,000.
As such, turning the $42K resistance level to support is still a major variable that can determine whether we see new lows.
Additionally, the analyst emphasized that the strength of the United States dollar is also worth looking at in the short term. As it presently recovers, the USD currency index (DXY) is setting sights on 94 highs before recoiling. Observers suggest the last-mentioned move will give the world’s largest cryptocurrency some much-needed breathing space.
“Expecting $DXY to drop more in the coming days, BTC should see more relief bounce because of that. As tweeted a couple of times before: real strength for crypto returns when DXY completed the move to the red box and goes for the green box,” Crypto_Ed_NL said a few days ago, attaching the chart that can be seen below.