Bitcoin Set To Recover Up To 20% Price Value As Crypto Bulls Pull Their Weight
The number one cryptocurrency, Bitcoin, continues to field abysmal price value in the crypto market as it fell below the $40,000 mark in the early hours of Monday, a five-month all-time low.
Bitcoin’s Price fall to equal September 21 decline in the last year comes after its arduous upswing late last year in December, one that saw it break the $49,000 resistance region to briefly trade above $50,000 to a monthly high of $53,000. Analysts speculated that its sustained price action above the broken $49,000 resistance would serve as a support and springboard that will see the token enjoy a long term price growth. However, due to the strong selling actions of old spenders on the network, BTC couldn’t sustain trade above the resistance mark and subsequently fell back to below $49,000 days later.
Expiration of over 6$ billion worth of contracts in the network further increased the token’s volatility, effectively distancing the notion of an all-time reclamation by the token. However, analysts and investors predict optimistic movement for the token, with the latter having its long-term HODLing BTC entering 2022. Further backed the optimism is the purchase of over $90 million worth of BTC by crypto giant Microstrategy despite its overall downward trend at the time.
Bitcoin’s Price Action transitioning into 2022 continued to field an overall downward trend; it has now fallen below $40,000 to equal the decline on September 21. It has now bounced off its monthly S1 support level and a longer-term red descending trend line; a reversal can be expected at this point, effectively transposing the buy-side with risk-on back on the front foot.
Bitcoin Set To Reverse And Run Towards $50,000 To Recover At Least 20% Price Value
Bitcoin price movement since year start has given a majority of investors in the industry heartache due to the significant loss of assets value. Investors that have effectively grown their portfolios following BTC’s short impressive run in the last week of December last year saw their portfolios devalue by almost 17% in a single week on entry into 2022.
Heavy pessimism that is starting to gather traction regarding the crypto’s price growth has begun to diminish as on-chain analytics have revealed that crypto bulls have been pulling their weight in the market in terms of massive injections of investment capital, a welcome development by the investing community. The global risk on-time across assets that occurred during the European session also serves as reassurance for positive net price growth and is bound to erase the likely negative factors responsible for the abysmal price action the mother coin has fielded in the last ten days of the new year.
However, technical analysis has indicated a possible 20% price recovery for BTC to trade at and possibly above $50,000 by the end of the week.
Technical Analysis Of BTC Possible Price Action
Based on in-depth technical analysis, BTC is set to recover with a precise entry point in the $39,800 price region. It is bound to bounce off the five months all-time low that last occurred in September, followed by a possible rejection by the net descending trendline that has formed since early November.
With the slow market-wide correction of cryptocurrencies globally, a gradual upward trend is making headway, one that can see the leader, Bitcoin, break Monday high to hit a target price of $44,088 later in the day. Should the crypto market continue to field this momentum, by the time the market closes globally on Thursday, Bitcoin’s Price would begin its assault on the 200-day Simple Moving Average (SMA) of $48,760, which is now within inches of the $50,000 mark which could be potentially breached before the weekend on Saturday.