Bitcoin’s return to the sub-$37,000 regions is reinforcing analysts’ opinion that BTC is either in for a prolonged consolidation or additional decline.
On February 2, the crypto market is yet again in the negative, as global financial markets remain volatile. Bitcoin’s price dropped to $36,800 after a flurry of selling, as reported by Cointelegraph Markets Pro and TradingView.
Here’s what market analysts and traders are expressing about Wednesday’s Bitcoin price activity, as well as what places to keep close tabs on.
Bulls in Trouble
Crypto trader and pen name Twitter user ‘HornHairs’ provided insight into the primary support and resistance zones for Bitcoin. A move back to $38,000s is essentially a negative retest until we can recapture $38,700,” according to the expert after establishing support at this level.
However, if the market turns bearish, the price may continue to fall.
Bitcoin Fourth Attempt
Crypto trader and pseudonymous Twitter user ‘Daan Crypto Trades’ released a chart demonstrating the difficulty Bitcoin has had in breaking above this trend since topping out in November.
Everyone appears to be watching the same line now, which may result in some fakeouts. As a result, be cautious. It’s testing the diagonal for the fourth time right now. When is it going to snap?
Technical analyst and pseudonymous Twitter user ‘Decodejar’ outlined a forward-looking analysis on what could happen next for Bitcoin. It posted a chart indicating a likely fall lower for the leading cryptocurrency.
As depicted by Decodejar, this is a typical ABC wave 4 spread flat and closing below the lows of 2013.
Although the market may require additional time, this signals that the correction is nearing its end at these prices. I’ve become bored of hearing about bear markets, and I don’t see any evidence of them. This bull market is expected to remain stable and consolidated in my opinion.
The total market capitalization of all cryptocurrencies is currently $1.729 trillion, with Bitcoin commanding 41.1% of the market.
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