Bitcoin again retested $38,000 resistance level on January 26 as hopes for an expected recovery increased. Its price is expected to touch $40,000 and then higher. The short-term $39,600 target remains a favorite, even if the BTC price shows downward momentum. The analysts remain focused on the weekly close.
Next Target Set at $40,000
As the rebound continued on Monday, there have been two breakthroughs crossing $38,000. BTC/USD pair lingered slightly below this level with more direction cues coming in. Analysts found these signs encouraging and the stage is set for getting away from the bracket of $30,000-$40,000. Bitcoin stood its ground at $36,000 and tested $38,000. If this high point is touched again, there can be a breakout with potential testing at $40.7K.
Analysts Remain Bullish
They have set the BTC target at $39,600. It is considered its key resistance point on a higher timeframe. The hourly chart shows the cup-handle pattern. Even when the trend requires bitcoin to keep falling, $39,600 remains an important challenging zone.
In other news reports, Dogecoin gained more than other major cryptos. With all coins seeing the relief rally, Ether gained 4.3% in the last 24 hours and returned to cross $2500. The altcoin with the largest market cap was still outperformed. Several of its peers, like Solana and XRP, did better than it. Dogecoin led the top 10 market cap basis cryptocurrencies. DOGE showed 10% gains in the same timeframe. This rally came after the comment of Elon Musk where he promised to eat a McDonalds’ happy meal on TV if the company starts accepting Dogecoin.