Bitcoin is on the verge of the ultimate breakout to $40,000. The push to rally to this new all-time high comes after the flagship cryptocurrency pierced through the resistance at $35,000 on Wednesday. At the time of writing, BTC is teetering at $37,000 but has tested new all-time price levels close to $37,500.
Bitcoin must bring down the ascending channel resistance
The 4-hour chart clearly shows that BTC/USD has been growing within the confines of an ascending parallel channel. A break above the upper boundary will pave the way for the final leap to $40,000. However, some delay is also anticipated at $38,000 before the pioneer cryptocurrency makes the final approach to the near-term target.
A glance at various technical levels including the Relative Strength Index supports the bullish narrative. The indicator has recently crossed the overbought mark in the 4-hour timeframe. Therefore, room for growth is still plenty.
BTC/USD 4-hour chart
Similarly, on-chain data provided by Santiment, a leading analysis platform, reinforces the bullish narrative. For instance, the whales holding between 1,000 and 10,000 coins have increased consistently in the past couple of weeks.
On December 26, the addresses in this range stood at 2,128. At the time of writing, the addresses have soared to an all-time high of 2,241, representing a 5% growth. Although the percentage increase may be ignored for its minor face value, the volume moved by the whales is significant enough to increase the intensity of the tailwind behind Bitcoin.
It is worth noting that the bullish case will be invalidated if Bitcoin failed to break above the ascending parallel channel’s upper boundary. Moreover, if the selling pressure at $38,000 stays put, bears may gain confidence and push for revenge towards $30,000.
Bitcoin Intraday levels
Spot rate: $38,865
Relative change: -98
Percentage change: -0.2%
Trend: Bullish
Volatility: High
