After a heavy dump from the high of $69,500, Bitcoin reached the strong support of $28,000. The entire cryptocurrency market halted its crash and barely moved by +1% in the past day. Is the current consolidation a good thing for the cryptocurrency market? Will Bitcoin go up again after this slight halt? In this Bitcoin price prediction, we see where should prices reach, and assess why the current Bitcoin consolidation is a good thing.
Bitcoin stabilized above $28,000 – What happened?
When the crash happened, Bitcoin prices reached the low price of $25,450. However, prices directly adjusted back higher and stabilized above $28,000. In fact, this $28,000 price mark represents a very strong support and a key area for Bitcoin prices. Looking at figure 1, we can clearly see how prices tended to rebound higher every time they reached this key price.
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Bear in mind that fakeouts always occur. That’s why placing tight stop-loss triggers might throw you out of the market while you could’ve made some good greens.
Why is the current consolidation a good thing?
Usually, when prices consolidate for any asset, they tend to either continue the trend or retrace in the opposite direction. Professional traders are able to set important areas to assess whether the trend is continuing or reversed. For the current case of cryptocurrencies, most reached their respective support areas. The downward trend might continue, but consolidations are a good thing for the below reasons:
- They try to end the downward “snowball effect”
- Proves equilibrium in important areas
- They confirm key support prices
- They allow traders to enter the market again
Bitcoin Price Prediction – Will Bitcoin go up soon?
After such an extended consolidation, Bitcoin prices are expected to rebound towards the $34,000 price mark. From there, prices need to decide whether to continue their uptrend or go down again towards $28,000. The area delimited between $34,000 and $36,000 was previously a very strong buy zone, and might turn to a sell zone in these current circumstances. That’s why traders need to be extra careful when trading Bitcoin.
The Crypto Market at a Glance
In the past 24 hours, most cryptos consolidated and barely moved. Among the top gainers were GRT, KDA and KAVA gaining respectively 27%, 23%, and 12%. On the other side, CVX, TRX, and HNT were among the top losers in the top 100 cryptos, losing respectively -14%. -8%, and -5%.
1- Bitcoin (BTC): + 0.93 %
2- Ethereum (ETH): + 0.36 %
3- Tether (USDT): 0 %
4- USD Coin (USDC): 0 %
5- Binance Coin (BNB): + 2.71 %
6- Ripple (XRP): – 1.28 %
7- Cardano (ADA): + 3.76 % (surpassing Binance USD)
8- Binance USD (BUSD): 0%
9- Solana (SOL): + 2.43 %
10- Dogecoin (DOGE): – 1.04 %
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Source: https://cryptoticker.io/en/bitcoin-price-is-consolidating-good-thing/