End of routine? Traders and analysts are speculating an exit from the $40,000-$46,000 range, a pattern that would seriously put bitcoin (BTC) back on track for a sustainable bullish recovery.
The daily course of bitcoin (BTC) is brought to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.
Bitcoin short squeeze: a drop below $40,000 before a bullish impulse
bitcoin falls below $41,840 on Bitfinex today, January 14, 2022, before rebounding sharply to rise above $43,400. It is trading at $43,201 at the time of writing, and is currently recording a daily gain of 1.23%.
The drop below $42,000 grants trader Pentoshi’s wish for bitcoin’s price to drop below this level, with the lows then constituting a buying opportunity. The next step could then be, according to Pentoshi, the $46,000.
Decentrader analysts said in their market update today, that they expect bitcoin to decline further in the range of $30,000 – $40,000.
They nonetheless hint at the possibility of a bitcoin’s next bullish impulse, whose funding rates are gradually becoming more and more negative, a necessary condition for the markets to see a short squeeze. These financing rates remained until a few days ago, “stubbornly flat”.
Two major resistances for the price of bitcoin: a trend reversal at 90,000 BTC
Will bitcoin be able to resume the 50-week exponential moving average as support at the weekly close? This average currently sits in the $44,200-$44,500 area, and is an important resistance for the bulls to break.
Data coming from Whalemap shows the existence of another major resistance zone a little higher above $44,000. The whales have accumulated previously 90,000 BTC to $46,500.
They will “provide some resistance there though,” but regaining that level “will feel like a trend reversal,” according to Whalemap.
Will BTC markets’ hopes of an imminent exit from the routine pattern that has been in place for a few weeks come to fruition? Bitcoin price must break through at least two major resistances.
Is it possible to be a winner every time? Whether the bitcoin price is in great shape, or going through turbulence, Coin Trading offers you to increase your chances of success. Indeed, Coin Trading allows individuals to access a trading tool algorithmic and 100% automated. A real trend mechanism, this tool was designed to adapt to market reversals and position itself on the most dynamic crypto assets of the moment.