After the Dec. 3 market selloff, the cryptocurrency sector is now in an increased state of fear. The Bitcoin (BTC), price has remained below $50,000.
Cointelegraph Markets Pro and TradingView data show that bulls are able to keep BTC prices above $49,000, but the overall outlook suggests that more days of consolidation are ahead.
BTC/USDT 4-hour chart. TradingView
Here are some predictions from analysts about the future of Bitcoin price.
Strong support for the $40,000 and lower
Rekt Capital, a market analyst who is also a pseudonymous Twitter user, provided insight into Bitcoin’s weekly price action. He posted the following chart which highlights the main support and resistance areas traders should be aware of.
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said,
“BTC Weekly closed above and beyond the small red area, from which BTC had previously rebounded. BTC may lose this area, but there has not been a confirmed breakdown. The orange region is just below this area. It is a strong demand area that ended two -25% corrections between February and September.”
Recovery up to $52,000 in the short term
Traders who want to avoid price volatility in the coming days would be wise not to trade. According to Pentoshi (an analyst and pseudonymous user on Twitter), the following chart suggests a temporary recovery in BTC’s price to $52,000.
BTC/USD 1-day chart. Source: Twitter
Pentoshi believes that there will be a recovery over the long term. However, he warned that traders could find better entry points if they are patient.
BTC short-term trading can be seen back at $52,000, but I believe if you wait a few weeks you’ll avoid chop. Purchase in the low- to mid $40,000 range. Not get trapped. I don’t see any reason to start new longs. I will wait for a trade to open up to me.
Related: Bitcoin could drive people crazy for months, with a $53K BTC price ceiling — Analyst
You can expect “chop” from $42,000 to $53,000
Scott Melker, an independent analyst in the market, offered the final insight by posting the following tweet outlining the price levels that traders should be paying attention to.
$BTC My general view. >53K resumes bullish case
Melker, as seen in the tweet above, identified the $42,000 to $53,000 range as the choppy zone for traders. A breakout above this zone is a positive sign of bulls. Melker says that prices below $42,000 will signal that the bears control the BTC price in the future.
The total cryptocurrency market is now worth $2.285 trillion. Bitcoin’s dominance rate at 40.6% is also noteworthy.
com. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.