After bitcoin’s accumulation phase ends, the analysts believe that BTC could surge higher, while its price is now hovering around the $38,000 region over the past 24 hours. BTC surged after Tesla’s CEO Elon Musk changed his Twitter BIO to “Bitcoin” as we reported previously in our BTC news.
Since then, BTC dropped back to the $33,000 region and hovered back below $34,000 in the past few hours. Bitcoin has been consolidating ever since with no real direction to the upside nor to the downside as the analyst wrote:
“Think there’s a decent chance of BTC popping up here through the weekend. Hourly looks like straight Bitcoin’s accumulation. I unhedged/rebought some spot here. Staying off of derivatives for now as weekends can be choppy.”
Another trader known as “DontAlt” explained that BTC will see a huge upside movement if it manages to reach above $34,000:
“Momentum plays on the bull side got utterly rinsed when the Elon Musk bio change didn’t lead to much, and then continuation plays on the bear side got chopped. I’m watching the range below (green zones), any close through the boundaries and I’d expect a sizeable jump.”
Until BTC is able to see a clear breakout above the near-term resistance level, the analysts are awaiting consolidation. In the long-term analysts believe that BTC is on its way to see a mid-term uptrend. Zoran Kole, BTC trader and analyst noted:
“Haven’t updated this in several weeks. $BTC HTF thesis. Zoom out. It’s all going to be okay anon.”
Before the rally to $38,000, there was a confluence of a few on-chain indicators that are showing bearish trends forming. The selling pressure from the miners was increasing and the whales started depositing plenty of pressure towards BTC. this could be the reason why BTC was rejected from the $38,000 resistance level as many trades said that BTC will be able to reclaim the $38K and will confirm the bullish short-term trend reversal.
BTC increased slightly above the $38,000 level but it did struggle to remain above it which means that BTC was vulnerable for a quick correction as it saw a surge to the $38,000 level. In a few hours, BTC retraced and dropped below $33,000. In the near future, there’s a chance that BTC will consolidate will low volatility but will also result in altcoins seeing strong volatility and strong upside potential as well.
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