The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to the low of $18,500, prices soared and we have Bitcoin above 20K today. Is Bitcoin bullish today now that BTC price is above 20K? Let’s analyze in this Bitcoin price prediction article.
Cryptos are still Consolidating – What’s Happening to Cryptos?
Bitcoin prices reached their bottom of $18,500 and even consolidated around that low price for a full week. This led to a bearish sentiment in the crypto market. Most cryptos were looking bearish, and also consolidated around their respective support areas. Bitcoin still has a significant 40% market dominance in the crypto market. This causes other cryptocurrencies to become highly influenced by Bitcoin’s price action.
When Bitcoin consolidates, other cryptocurrencies tend to also consolidate. If we compare Bitcoin’s price action to most cryptocurrencies, we would see a very similar pattern in prices. For comparison, we can see below Bitcoin’s chart and Ethereum’s chart.
Bitcoin Above 20K – Consolidation Ended?
As stated earlier, Bitcoin was consolidating between $18,500 and $22,500. Recently, Bitcoin prices plunged below 20K and reached the lower consolidation area around $18,500. For almost a week, prices stayed relatively low, prompting most traders to close their positions or to consider shorting in case prices breached this support area.
However, big tech companies started to stock up again on Bitcoins. Microstrategy just purchased around 301 Bitcoins which were valued around $6 million. With such purchases occurring, crypto prices are bound for an increase, especially that there is lack of any positivity in the market.
With this in mind, we can conclude that Bitcoin simply rebounded from its lower support line, eyeing its higher resistance. Where will Bitcoin price reach? Keep reading.
Bitcoin Price Prediction – Where will Bitcoin Price reach?
Now that we know that Bitcoin is on the way to its upper consolidation band, we can assume that Bitcoin will continue on its uptrend with occassional adjustments. The first target for this would be the $22,500 price mark. This is where Bitcoin previously retraced lower and failed to continue its uptrend. That’s why we expect a first retracement around that area.
The second target for Bitcoin should be the $25,000 price mark. This is where Bitcoin first failed to recover from its low price of $18,500. Once the first target is successfully reached, we can assume that the second target should be on the way. When will Bitcoin reach 25K you might ask? Well, it took BTC prices around 1 months and a half to go from $18,500 to $25,000. We assume that the same will happen now, which would set the timeline till beginning of November 2022.
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Source: https://cryptoticker.io/en/bitcoin-above-20k-again-is-bitcoin-price-bullish-today/