Bitcoin has moved from the $30k support level to uncertain levels, making many traders worried.It looks like Bitcoin might be headed to the $40k level, according to analysts.
According to data from CoinTelegraph markets Pro and TradingView, Bitcoin experienced highs of $33,445 on Bitstamp on Sunday. On Saturday, that pair BTC/USD was at $30,070, meaning it has gained psychological support. This comes unexpected, considering the last week was full of volatility.
Even though Bitcoin is showing positive signs, many traders are still not convinced. They feel Bitcoin is yet to experience a price bottom. Bitcoin losing the exponential moving average is a matter of concern for the market bulls. The promising 50 WEMA is still not enough to be reclaimed as support.
According to Rekt capital, when they analyze Wyckoff, Bitcoin can bounce by $10,000 to reach the mid 40k range without any breakdown.
Market analysts such as PlanB have a different perspective on price activity. They use stock-to-flow models to deduct conclusions. They believe Bitcoin is volatile in the short term, but in the long term, it’s going up. This can be attained by comparing the Bitcoins 200-week moving average.
According to Cointelegraph, the 200 WMA is a spot that has never been crossed and is expected to increase monthly despite the current market losses.
Different factors in the market contribute to Bitcoin volatility. The recent crackdown in China has led to an increase in the hash rate. That means that the mining difficulty of Bitcoin has increased. But despite all this, Bitcoin still increased in price by almost 10%. This confirms that Bitcoin will increase in price in the long term, and volatility is only temporary.
Bitcoin volatility is still dictating the current market trends. It will remain a trendsetter in the cryptocurrency world.
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