Bitcoin (BTC), which has been undergoing new retests at $38,000 resistance since Jan. 26, showed renewed optimism over a possible recovery to $40,000 or higher.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Next stop a $40,000 retest?
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s rebound that began Monday.
Two breakthroughs totalling $38,000 were reported at the time of writing. The pair was still hovering below that level amid additional direction cues.
Michael van de Poppe (Cointelegraph contributor) said that the signs were encouraging and the stage was set for an exit from the corridor of $30,000 to $40,000
“Bitcoin had $36K in reserves and has tested $38K.” He said that if the one tested again, it was likely to breakout and possibly test $40.7K.”
Scott Melker, a trader, analyst, and podcast host, was almost as bullish in short timeframes. He is also known as the “Wolf Of All Streets”.
“Target at $39,600 is, as you know, the key resistance on higher times frames,” he stated in his most recent Twitter update. He identified a cup-handle pattern on the hourly charts.
He said that even though Bitcoin is expected to continue falling, $39,600 remains important as a challenge zone.
This is the weekly average of $39,600. This is the point where bullish market structure collapsed with a lower low. This is my initial target for my current longs. This “should” theoretically be retested to test for resistance, even though we are falling further. Never guaranteed. pic.twitter.com/4AUZRsFuF5
— January 26, 2022, The Wolf Of All Streets (@scottmelker).
Dogecoin outshines major cryptos
Altcoins saw relief while Ether (ETH), which gained 4.3% in the last 24 hours, returned above $2,500.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
Related: Eth2 no longer after Ethereum Foundation drops its name in rebrand
Despite being the largest altcoin in market capitalization, several of its peers outperformed it, including Solana and XRP.
Dogecoin (DOGE) was the leader of the top 10 cryptocurrencies in terms of market capital. It posted around 10% growth over that same period.
Elon Musk, Tesla CEO, announced the move in public. He promised to eat one McDonald’s Happy Meal if McDonald’s accepts DOGE payments.
If @McDonalds allows Dogecoin, I’ll eat a happy dinner on TV
Elon Musk (@elonmusk), January 25, 2022
DOGE/USD traded at $0.15 as of the writing, a little over 9% off its position one week ago.