In the last few days, Bitcoin price touched its all-time high price of USD 42,000 only to return back and join a sideways trend. Most altcoins were influenced by this little pullback, while many other coins are exploding higher than BTC. The important question here is Will Bitcoin price go up? What happens to Bitcoin prices now? Will we observe a long-term consolidation or will the price move higher? Let’s take a look at it in more detail.
Bitcoin Price Analysis: What Can We Expect From Bitcoin?
On the weekly chart, Bitcoin price is looking to find stability. At the time of writing this, Bitcoin price is sitting at $32905 and the price has decreased by almost 12% in the last 7 days.
It seems that bears succeeded to push the Bitcoin price below the $33000 level in what seemed to be a clear breakdown. However, bulls may again quickly bought the dip and that could push the digital asset above $35,000 within a few hours. Obviously, there could be 2 scenarios. The BTC price will rise and go back to defeat the ATH into new unknown territories or it will fail to pick up its momentum, and the lower consolidation trend line of USD 31,500 will be breached.
Bitcoin Price Analysis: The Ongoing Consolidation May Be Good for BTC
Well, Technical analysis is normally effective in establishing the correct entries and exits when trading markets. In this particular case, understanding that prices are consolidating between support and resistance levels, then four conditions could be useful.
- Stop-loss area around USD 30,000
- Buy-limit order around USD 32,500
- Take-profit around USD 38,000
- Buy-stop around USD 41,000
In the previous analysis, we had mentioned that the price of Bitcoin could create a right shoulder, indicating a bearish trend. At that time the BTC was sitting at USD 38,250. We had mentioned that “The price might reach back the USD 32,135 price area and break it downwards, and only then will the crash be confirmed”. But again buyers may help drive prices and keep them stable above the 30K psychological price area. Prices will shift between USD 31,300 and USD 40,000 giving traders major events to day trade and profit from a sideways trend.
At the moment the BTC price is looking for stability, recognizing that prices are consolidating between support and resistance levels, we suggest following the below:
- If users already hold BTC below USD 31,500 prices, they are safe in this phase.
- If users are thinking about diving into the market, they can enter a buy position and set a stop-loss around that support area of USD 31,500 (preferably lower)
- If they favor to wait and observe price support before entering the market, they can wait for a price of USD 40,000 breach followed by huge volatility. In this case, they can buy around that price area and set a fixed stop-loss.