Bitcoin (BTC) – Break and Retest Pattern Suggests More Gains
- BTC has experienced a rally over the last few days.
- However, the overnight session had the rally pausing, resulting in pullbacks.
- A break and retest setup might keep the coin upward.
Bitcoin (BTC/USD saw its rebound pausing during overnight sessions as market sentiment continues. The pair surged past $51,000, a nearly 22.5% beyond December’s lowest mark. However, BTC retreated after that, exploring the value zone at $49,500 at this publication. Bitcoin stays around 25% beneath its ATH levels.
Improving Market Sentiment
Bitcoin faced rough sessions over the last few months. After nearing the critical resistance area around $70K in November, the currency encountered a massive crash to its multi-month lows of $42,000. However, recent actions had BTC crawling back, rising past December’s lowest level.
The current rally comes amid improved market sentiment as financial participants downplay the effects of the Omicron variant and Fed Reserve. True enough, Stocks have enjoyed surges as S&P 500 soared to an ATH. Moreover, crude oil and crypto prices have been in a bullish mood.
Recent updates show that Omicron strain has mild signs, and most victims do not require hospitalization. Furthermore, South Africa has seen its COVID-19 cases declining. Therefore, the latest development has more individuals believe a continued recovery as more individuals acquire natural immunity.
BTC/USD saw a rally as market players watched the improving market metrics. The latest on-chain stat indicates the transaction count has been surging over the last few months. Also, BTC’s mining difficulty continued to rise, showing demand for digital assets. Another trigger is that people that sold $BTV for tax-loss purposes started buying again. Meanwhile, Bitcoin might not see lucrative news today as market participants take a week off, preparing for 2022.
BTC/USD Prediction
According to the four-hour chart, BTC/USD formed massive support near $46K in December. This pattern resembles what occurred in July as the pair bottomed. BTC also shifted to the inverted head-shoulders pattern’s neckline that emerged in December. The most important thing is that BTC retested this mark, translating to a break and retest setup. With that, the currency can keep surging as bulls aim the critical resistance at $53,000.
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