The market is still pricing in the impact of another potential Fed interest rate hike, which put a cap on cryptocurrency’s growth this week. After briefly hovering above the $30K milestone, Bitcoin started to decline on Wednesday.
Bitcoin may be approaching a local top, according to a crypto strategist. DonAlt, a pseudonymous analyst, stated that he thought Bitcoin’s rise beyond $30,000 was a range deviation. The range deviation beyond $30,000 is comparable to the range deviation at the bottom, when Bitcoin broke below $18,000 in November of last year, claims the crypto analyst.
“I’m gonna have to be bearish here for the same reason I was bullish at $16,000. Expecting top to be in until proven otherwise. $20,000 or strength is what I’m gonna do anyway. Anything in between likely just gonna be chop for months anyway.”
Range deviations are closely monitored by traders because they may indicate probable trend reversals after fooling some market players.
According to his chart, the price range for Bitcoin at this time is between $18,000 and $30,000. He asserted that the recent rise to $31,000 may have been a trap for Bitcoin bulls now that BTC is trading around $27,317 and back in the range.
The analyst further warned that the market structure and timing of BTC resemble those of the cryptocurrency’s price movement in the beginning of 2021, when it rose from $55,000 to $65,000 in less than two months before plummeting all the way to $30,000. He claimed that before considering returning to the markets, Bitcoin must reach a crucial psychological threshold.
At the time of writing, Bitcoin is trading at $27,610 and is down by more than one percent in the last 24 hours.
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Elena R
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
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Introduction
The Bitcoin price has been in an extended bull run for the better part of the last year, with the prices rapidly rising from a low of $3,800 all the way to $60,000 at present. This has sparked renewed mainstream interest in the cryptocurrency, with more people keen to invest than ever before.
Today, many investors are wondering where Bitcoin is heading in the coming week, and whether we will see prices exceed the $30K mark or not. Let’s take a closer look and analyze the current market conditions to get a better idea of where the Bitcoin price is headed.
Analysis
The Bitcoin market has been on a tear this past month, with prices soaring to unprecedented highs. The rise has been attributed to increased institutional activity in the market, with major firms such as Tesla, Square, and others announcing large investments in the cryptocurrency.
This has provided a major boost to investor confidence in the cryptocurrency, further driving up demand for Bitcoin. According to market data, Bitcoin’s current market capitalization is nearing $1 Trillion.
The bullish trend is likely to continue as long as institutional participation remains high and major firms continue to make large investments. Moreover, an increasing number of financial firms are offering Bitcoin trading services, further driving demand for the cryptocurrency.
On the other hand, we must consider the fact that the Bitcoin market is highly volatile and prices can swing wildly in either direction at short notice. This means that caution is warranted, and investors should consider doing their own due diligence before investing in the cryptocurrency.
Conclusion
In conclusion, it seems likely that prices will continue to rise in the near future as more institutional investors jump on board. It is possible that prices could exceed the $30K mark if more firms make significant investments in the cryptocurrency.
However, investors should keep in mind that the Bitcoin market is highly volatile and prices can swing wildly at short notice. Therefore, caution is key and investors should refrain from investing money they cannot afford to lose.
