The bitcoin price has circled around the $4,200 resistance level over the past three months and was struggling to maintain momentum above the $4,000 price point. In today’s bitcoin news, we have an analysis of the price of the number one cryptocurrency according to multiple crypto traders and crypto enthusiasts.
Many traders expressed their concerns over the past period about the stability of the cryptocurrency because, in late 2018, Bitcoin recorded a drop of around 50 percent after the three months of stagnation between the $6,300 and $6,500 range.
“According to Bulkowski’s study, more than 60% of ascending triangles with declining volume end up breaking upwards with an average price rise of 35%. That gives us a target of $5500 BTC once the breakout is confirmed.”
Other traders are optimistic about the price of Bitcoin but are a little concerned about it being incapable of breaking out the $4,000 price range and are worried about whether it would test other major resistance levels. Over the past week, BTC managed to stay relatively stable in the $4,000 range but it was unable to rebound to the $4,200 level.
Alex Kruger, a well-known crypto market analyst said that Bitcoin is going through a short-term correction by saying:
“It is a simple stops run. Prices had just gone up vertically for 16 days without a pullback. Take $ETH for example: +38% without a pullback. Lots of levered longs piled up. And people FOMOed in. BTC reached the first level strong resistance ($4200) and a correction ensued. As it is with any other asset class or market, the analyst emphasized that a prolonged bullish movement is often met with a large pullback.”
On the technical side, Bitcoin is having a hard time finding a decent momentum and it could require a slight push that will boost the price to escape from the $4,200 level in the near-term. While Bitcoin recorded slight losses on the day, many crypto assets like TRON, OmiseGo, and Cardano showed slight gains up to 10 percent with Cardano leading against Bitcoin.
It is also important to notice the hashrate of BTC because the gap between it and the price explains that the miners are willing to mine for almost no profit because they expect for the price to increase in the long run.
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