Bitcoin (BTC) conducted fresh resistance tests at $38,000 on January 26 as optimism about a possible recovery surged to $40,000 and above.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Next stop for a $40K retest?
It followed data from Cointelegraph Markets Pro and TradingView BTC/USD as it continued the decline that started on Monday.
At the time of writing, there were two breakouts at $38,000, with the pair remaining just below that level amid additional directional signals.
For Cointelegraph contributor Mikael van de Pope, the signals were encouraging and everything was ready for a potential exit from the $30,000 to $40,000 lane.
“Bitcoin had $36,000 and it has already tested $38,000. If it tests again, we will likely have an outbreak and possibly test $40.7000,” he told his Twitter followers.
Trader, analyst, and podcast host Scott Melker, better known as “The Wolf of All Streets,” was almost short-term bullish.
“Target is $39,600, which you know is ‘constitutive’ as major resistance on higher time frames,” he said in his latest Twitter update.
While the general trend is for Bitcoin to continue falling, he added, $39,600 remains an important area to challenge.
Dogecoin Earnings Outperform Major Cryptocurrencies
Meanwhile, altcoins continued to feel comfortable, with Ether (ETH) gaining an additional 4.3% in the past 24 hours, returning more than $2,500.
1 hour light chart of ETH/USD (bit sign). Source: Trading View
Related: Eth2 No Longer Exist After Ethereum Foundation Drops Its Rebranding
The largest altcoin by market capitalization has continued to outperform many of its peers, including Solana (SOL) and XRP.
However, the top 10 cryptocurrencies by market capitalization are led by Dogecoin (DOGE), which has gained around 10% over the same period.
The move was prompted by fresh publicity from Tesla boss Elon Musk, who has promised to eat one of McDonald’s Happy Meals on TV if the fast food giant decides to accept DOGE for payment.