Bitcoin consolidation close to $ 40,000; Analysts’ opinions have risen even more



Despite fears of a deeper decline in the price of bitcoin, which has gripped some investors, a number of analysts still have very high forecasts for bitcoin. In contrast, internal chain data show that another upward trend is unlikely.

According to the Kevin Telegraph, after the price fluctuated close to $ 40,000 for the second day in a row and the announcement of inflation in the US reached its highest level since 1981, the index of fear and greed in the entire digital currency market is in the range of “extreme fear.”

Index of fear and greed in the digital currency market.
Index of fear and greed in the digital currency market.

Bitcoin tried to climb above $ 40,000 in the early hours of today, but after reaching a resistance of $ 40,650, the price of this digital currency eventually fell below $ 39,600.

Bitcoin price chart in 1-day review.
Bitcoin price chart in 1-day review.

Next, we will look at analysts’ views on the current state of bitcoin and the potential risks associated with growing mistrust in financial markets.

Bitcoin is testing significant support and resistance

Credible Crypto, a popular digital currency analyst on Twitter, posted the chart below, saying the current fluctuations in bitcoin prices are reconsidering the area that is the main support and resistance to 2020 prices.

Bitcoin price chart in weekly view;  Cryptocurrency analysis.
Bitcoin price chart in weekly view; Cryptocurrency analysis.

According to Cryptable Crypto, the last 3 rounds of the chart (one red circle and two green circles to the right of the image) show examples of Bitcoin’s weekly fluctuations that were above or below the starting point of the weekly candle. “Without a weekly candle above or below the blue range, this perspective doesn’t make sense,” said the analyst.

Credible Crypto said:

If a candlestick closes below the blue range, I change my forecast. But at the moment I see no reason for that.

Attempts to climb Bitcoin can be fruitless

In its weekly report, the Glassnode think tank discusses the forecasts and decisions of bitcoin investors. According to the report, after Bitcoin withdrew from the months-long stabilization process, “investors closed an average volume of their trading positions and saved their profits.”

“Since mid-February (late February), 13,300 bitcoins have been profitable,” Golsnwood said, and although this is not the highest amount in history, “may be the reason for reversing the upward trend in the digital currency.”

Graph the number of bitcoins in the profit or loss.
Graph the number of bitcoins in the profit or loss.

Overall, recent improvements in bitcoin prices have been relatively weak; Because the market was waiting for a spark to help create an uptrend and attract new flows in the field.

Golsnood added:

Indicators of intra-chain activity, especially such as the number of transactions and active users, show that recovering lost levels has so far been ineffective. In addition, the data show that the bitcoin market is still dominated by owners and few new investors are entering it.

A huge jump on the road?

Another market analyst using his Twitter username BTCfuel made very high predictions. He announced the possibility of an upcoming “big leap” by posting the chart below.

Bitcoin price chart in everyday view;  BTCFuel analysis.
Bitcoin price chart in everyday view; BTCFuel analysis.

He said:

When we look at the Relative Strength Index (RSI), the correction of bitcoin in 2022 is very similar to 2021. The formation of a strong upward trend is very close.

Bitcoin consolidation close to $ 40,000; Analysts’ opinions have risen more than ever, appearing for the first time in Digital Currency.

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