25 C
New York
Saturday, October 16, 2021

Buy now

Analysts Say Bitcoin Price “Needed a Respite” Before Chasing New Highs




The optimism generated earlier this week when the prices of Bitcoin and altcoins rose it was toned down on August 12 when BTC fell below $ 43,000. This led some analysts to warn that the price action seen over the past week was nothing more than a dead cat bounce.

Data of Cointelegraph Markets Pro Y TradingView show that a rush of sales early in the morning pushed the price of Bitcoin (BTC) to a low of $ 43,752 And, as of this writing, the bulls are struggling to push the price back up to $ 45,000.

4-hour chart of the BTC / USDT pair. Source: TradingView

Here’s what analysts are saying about the current Bitcoin price action and what they expect in the near term.

$ 43,600 and $ 43,000 are key support levels

According to the market analyst and Cointelegraph contributor, MichaĆ«l van de Poppe, Bitcoin’s drop from $ 45,000 to $ 43,500 was “pretty normal”, with longer time frame charts showing bearish divergence, implying that “We could have an additional corrective move.”

van de Poppe identified $ 43,600 as “support level 1” and $ 43,000 as “support level 2” and pointed out that they are key areas to watch out for at this time.

Short term, the analyst indicated that the price of Bitcoin could bounce back to $ 45,000 and then lower again to test this support level again, and if the support recovers, it is possible “To conclude that buyers are returning to the market.”

van de Poppe said:

“If those two support levels are lost, then we are likely to see $ 42,000 next, and if that doesn’t hold, then $ 41,000 afterward. And that’s for me the breakout that I want to start yearning for strongly, Well, I don’t want it to drop any lower, since the only level we have left after that is USD 38,000. “

Bulls are taking a breather before climbing

Thursday’s Bitcoin price pullback was also seen as a normal move by David Lifchitz, Managing Partner and Chief Investment Officer of ExoAlpha. Lifchitz pointed to the “almost uninterrupted rise of the last two weeks” as a sign that “Bulls need to take a breather before continuing their momentum to the upside.”

According to him, the “$ 36,000 for BTC and $ 2,300 for Ether are obvious targets”, but he also affirmed that “no one knows how much the setback will be from where we are now.”




Lifchitz said:

“But perhaps the dips could be bought before reaching these levels. Of course, this is in case there is no other regulatory drama, otherwise revisiting the $ 30,000 level for BTC and $ 1,800 would not be ruled out. for Ether “.

$ 45,200 has been a solid level of support for Bitcoin in the past

According to Rekt Capital, an anonymous Twitter analyst, andhe $ 45,200 level has been a difficult resistance level in the past.

In previous instances, cWhen BTC traded near these levels, the price retested and held support near $ 44,200 before starting another rally.

Based on this analysis, If BTC can stay close to this level, then the price will reverse and head higher.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.

Keep reading:




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
2,984FollowersFollow
0SubscribersSubscribe

Latest Articles