Bitcoin has been displaying strong bullish momentum in recent weeks. This is reflected in its price action, which has been consistently trending higher with higher highs and higher lows.
The recent rally has been supported by a surge in demand for Bitcoin from both retail and institutional investors. And CryptosRUSs George Tung is reiterating his prediction of the king coin hitting $40k in the next two months.
Bitcoin to $40k
George has noted that Bitcoin’s technical indicators are showing signs of strength. For instance, the Moving Average Convergence Divergence (MACD) indicator has crossed over into bullish territory, indicating a potential trend reversal. Furthermore, the Relative Strength Index (RSI) is currently showing Bitcoin as being oversold, suggesting that the market is due for a correction to the upside.
And the current economic climate, with failing banks and growing inflation concerns, is likely to continue driving more and more investors toward alternative assets such as Bitcoin. As more investors enter the market, the demand for Bitcoin increases, putting upward pressure on its price. George expects the preventive actions the U.S. government is taking to backfire leading to exactly that.
Assuming Bitcoin continues its current bullish momentum, there are several key price levels and psychological barriers that the cryptocurrency may need to overcome before it reaches $40,000, says George. The first major price level to watch is $30,000, which Bitcoin recently surpassed.
This level may continue to act as a psychological barrier, but if Bitcoin can maintain its momentum, it could push higher toward the next key level at $35,000. This level may be a key psychological barrier, as it represents a significant milestone for cryptocurrency. Once Bitcoin surpasses $35,000, it may encounter some resistance at the $38,000 level before finally reaching $40,000. BTC was worth $28,210 at the time this article was written.
Source: https://coinpedia.org/bitcoin/top-reasons-why-bitcoin-btc-price-can-hit-40k-soon/