Crypto traders continue to wait, as Bitcoin (BTC), which is now below resistance at $43,000, continues to struggle. They are waiting for some momentum that will allow them to rally back up to the $50,000 mark.
Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price has fluctuated between $41,500 and $43,000 in the last few days. With tensions rising between Russia and Ukraine, many traders are less optimistic about Bitcoin’s short-term prospects.
BTC/USDT 1-day chart. Source: TradingView
Here are some thoughts from analysts about the short-term outlook for Bitcoin prices.
Is Bitcoin heading towards zero?
Peter Schiff, a well-known cryptocurrency bear, posted the following chart. It shows a double top of Bitcoin as a sign that the digital currency is about to plummet to $0.
BTC/USD 1-week chart. Source: Twitter
Schiff asked his followers to “imagine what this chart will look like once Bitcoin breaks below $30,000”, and they direly predicted that “If this double-top completes, there is zero!”
“A $10,000 drop would seem like a lock but there is no reason to believe this level would be a permanent floor.”
Crypto analyst and pseudonymous Twitter User ‘TechDev” provided a more detailed look at the current chart formation. He posted the following chart, which divided the “yearlong BTC range into sub-ranges of 2-week duration.
BTC/USD 2-week chart. Source: Twitter
“Closing outside one has given weeks of price action within the next. Yesterday’s 2W close of $40,000 above suggests that the previous close was an anomaly. The current 2W key is used to determine which sub-range of the market we will be investing in over the coming weeks.
“Bullish cross-over happening now”
Market analyst Caleb Franzen posted this chart showing daily candles for Bitcoin since October 2020. It is evidence that Bitcoin’s price could rise soon.
BTC/USD 1-day chart. Source: Twitter
“The red and white indicators use linear regression analysis in order to determine the slope of the regression over different time periods (slow vs. rapid). Crossovers can be bullish or bearish depending on which direction they are coming from. Crossovers with bulls are happening now …”
Related: Bitcoin’s 50-day moving mean is kissed by a trader as he predicts new BTC price volatility
Is the plunge below $40,000 a bear trap
A crypto trader and pseudonymous user on Twitter, Phoenix addressed the recent drop in BTC prices below $40,000 support. He posted the following chart which suggests that the dip was an attempt to “suckin traders on the wrong side” or “trap breakout traders” by forcing them to “load higher/lower targets.”
BTC/USD 1-day chart. Source: Twitter
“History does not repeat, but it rhymes often.” This could have been an isolated deviation. The sentiment was at least close to the lows, that’s all I can say.
The total cryptocurrency market is now worth $1.892 trillion, and Bitcoin’s dominance rate of 42.5%.
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Eileen Wilson –Technology and Energy
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