Bitcoin (BTC) re-entered the $38,000 resistance on Jan. 26 as optimism about a possible recovery to $40,000 or higher grew.
Will you stop the $40,000 next?
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as the rally that started on Monday continued.
At press time, there have been two breakouts above $38,000 and the pair remains just below this level amid fresh direction signs.
For Cointelegraph contributor Michaël van de Poppe, the signs are encouraging as the stage is set for a possible breakout of the $30,000-$40,000 range.
“Bitcoin held $36,000 and has already reached $38,000. If it hits again, we are likely to break out and potentially test $40,700,” He said to Twitter followers.
Nearly as optimistic in the short term was trader, analyst and podcast host Scott Melker, known as the “wolf of the streets”.
“Target is $39,600 which, as you know, ‘happens’ to be the key resistance on longer timeframes,” he said in his latest Twitter update, identifying a cup and handle pattern on the hourly chart .
Even though the overall trend suggests Bitcoin continues falling, he added that the $39,600 level is still a key target area.
Here’s $39,600 on a weekly basis. Here the bullish market structure collapsed with a lower low.
This is the initial goal of my current longs. It “should” theoretically be retested as a resistance even as we continue lower.
Never guaranteed. pic.twitter.com/4AUZRsFuF5
– The wolf of all streets (@scottmelker) January 26, 2022
Dogecoin gains eclipse major cryptocurrencies
Altcoins, meanwhile, continued to see some relief, with Ether (ETH) gaining another 4.3% over the past 24 hours to break above $2,500 again.
However, the largest altcoin by market cap has been outperformed by others like Solana (SOL) and XRP.
However, the top 10 cryptocurrencies by market cap were led by Dogecoin (DOGE), which gained around 10% over the same period.
The uptick was accompanied by another mention from Tesla CEO Elon Musk pledging to eat a McDonald’s Happy Meal on TV if the fast-food giant accepts DOGE as a payment method.
I’ll eat a Happy Meal on TV when @MC Donalds accepts Dogecoin
— Elon Musk (@elonmusk) January 25, 2022
The DOGE/USD pair is trading at $0.15 at press time, down 9% from a week ago.