Bitcoin consolidation close to $ 40,000; Analysts’ views have risen even higher
Despite fears of a deeper fall in the price of bitcoin that has gripped some investors, a number of analysts still have highly bullish forecasts for bitcoin. In contrast, intra-chain data show that another uptrend is unlikely.
To Report Kevin Telegraph, with prices hovering around $ 40,000 for the second day in a row and the news of inflation reaching its highest level in the United States since 1981, the index of fear and greed of the entire digital currency market is in the “extreme fear” range. .
Bitcoin tried to climb above $ 40,000 in the early hours of today; But with the resistance at $ 40,650, the price of this digital currency eventually fell below $ 39,600.
In the following, we will examine analysts’ views on the current state of Bitcoin and the potential risks associated with increasing feelings of distrust in financial markets.
Bitcoin is testing significant support and resistance
Credible Crypto, a popular digital currency analyst on Twitter, published the chart below, saying that the current fluctuations in bitcoin prices re-examine the area that has been the main support and price resistance since 2020.
According to CryptoCrypto, the last 3 circles on the chart (one red circle and two green circles to the right of the image) show examples of Bitcoin weekly fluctuations that have been above or below the starting point of the weekly candle. “Without a weekly candle above or below the blue range, this outlook makes no sense,” says the analyst.
Credible Crypto said:
If a candlestick closes below the blue range, I change my forecast. But at the moment I do not see any reason for this.
Bitcoin’s attempt to climb may be fruitless
In its weekly report, the Glassnode think tank discusses the forecasts and decisions of Bitcoin investors. According to the report, following the exit of Bitcoin from its multi-month stabilization process, “investors have closed a medium volume of their trading positions and saved their profits.”
“Since mid-February (late February), 13,300 bitcoins have been in profitability,” Golsnood said, and although this is not the highest amount in history, it “could be a reason to reverse the digital currency’s uptrend.”
Overall, recent bitcoin price improvements have been relatively weak; Because the market was waiting for a spark to help create an upward trend and attract new inflows into the field.
Golsnood added:
Intra-chain activity indicators, especially such as the number of transactions and active users, show that the recovery of lost levels has been ineffective so far. In addition, the data show that the bitcoin market is still dominated by holders and few new investors are entering it.
A huge leap on the way?
Another market analyst, using his username BTCfuel on Twitter, has made highly bullish forecasts. He announced the possibility of an imminent “big leap” by publishing the chart below.
He said:
When we look at the Relative Strength Index (RSI), the bitcoin correction in 2022 is very similar to 2021. The formation of a strong uptrend is very close.