Bitcoin (BTC) is the flagship and the most traded coin in the cryptocurrency. While purchasing or trading any other coin, it’s usually better to look at how BTC is performing recently because all the cryptocurrencies are highly dependent on it although each coin has separate fundamentals and separate uses.
BTC has reached its ALL-TIME HIGH to a value of nearly64k and from there it can be seen that it has pushed down quite impulsively. Some consider it due to Elon influence on it while some believe that this is how the market moves which is to move in waves and consider waves to be healthy for the market.
In the past we can see from 12 December 2020 to 14 February 2021, the market was clearly in the hands of bulls leaving the price from $17k to eventually $58k, and onwards from that BTC did push up to $64k but the market was not quite impulsive as it was before so we could have expected the price to fall.
Did Elon Tweet cause the Bitcoin crash?
Elon made a tweet regarding tesla and BTC and said that Tesla is no more accepting BTC as a form of payment which resulted in the drop of the market. The fact that the market had already showed weakness in its momentum, the influential news made the price fall rapidly.
Now recently if we were to look at how BTC is performing and what can we expect, charts can be looked at to find what the market is telling and what can be expected.
Bitcoin (BTC) behavior
If we see in the past when the market was making Higher Low, Higher High it was respecting the trendline clearly, and when it broke down, a clear push to the downside came, obviously there were more confluences but we will not look into that rather at the current price and confluences. Now in the recent move to the downside i.e. the market was respecting the descending trend line and it did exactly the same but to the opposite. So can a push to the upside be expected?
BTC Price Prediction
The market has broken the major resistance of $40k quite impulsively showing that the bears are no more interested in that level. Besides that, if we mark over market structure we can see that the market has broken the previous structure giving us a sign of reversal, or you can consider it as a breakout of consolidation having parameters of $40.6k as the roof and $29.6k as the floor.
But this means we can go long now? Obviously NO! as mentioned that many believe that waves are necessary for the market to stay healthy so it can’t be ignored, a recently extreme huge amount of buyers are in the market so sellers must enter in order for the market to move more up. So a Fibolevel to the nearest resistance from where the price can fall, we can expect it to drop around 0.50 to 0.682 Fibo and from there if we see a shift in market structure and loss in momentum we can go for long!
What’s Ahead for Bitcoin (BTC)?
The market can fall down to a price of $44.3k and if it doesn’t hold $40k is a possibility. Bears are also quite skeptical, but as long as D, 5D remains bullish we can believe BTC to be stable for the time being.
