Bitcoin News: Crypto Set for a 'Thought-Provoking' Week As Major Tests Approach
Scroll DownBitcoin’s return to the sub-$37k range is solidifying analyst predictions that the coin is likely to see lengthy consolidation or further decline.
As of February 2nd, 2022, the crypto market is again back in the red, with the broader global markets experiencing an increase in volatility.
TradingView data shows Bitcoin’s price hovering around $38,200 for the majority of the morning before experiencing a selloff that pushed the price just below $37,000.
Insights provided by a crypto trader under the pseudonym HornHairs on Twitter indicate a solid level of support for Bitcoin near $37,400. According to their analysis, he predicts that after finding support at this level, a move back to the $38,000 level would only signify “a bearish retest unless we can reclaim $38,700”.
Bitcoin has seen descending price action since topping out near $69,000 back in November. Crypto trader and pseudonymous Twitter user Daan Crypto Trades notes the difficulty Bitcoin has recently had breaking out above a diagonal downward trendline, cautioning that it “could cause for some fake-outs”.
Technical analyst and pseudonymous Twitter user Decodejar offered a forward looking analysis for Bitcoin, predicting a move lower in the near term. He states that a common chart is currently being circulated by analysts that indicates a “bearish ABC wave 4 expanded flat, ending below last year’s lows”. Decodejar notes that there “isn’t much volume for an impulse”, and that he doesn’t “think we break last year’s lows.”
However, he also states that he feels the correction is “likely almost done at these levels”, and that he is “sick of hearing” about the potential for a bear market; instead, he states that he sees “a fully intact bull market that is consolidating.”
As of the time of writing, the overall cryptocurrency market capitalization stands at $1.708 trillion, with Bitcoin’s dominance rating at 41%.
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