The broader crypto ecosystem was in a state of fear on December 6th after the market sell-off on December 3rd.
Data from TradingView shows the bulls are trying to keep Bitcoin price above $ 49,000, but the general outlook suggests more days of consolidation are on the way.
Here’s what analysts are saying about what to expect from Bitcoin price in the coming weeks.
Range $ 42,000- $ 53,000
Traders looking to avoid volatile price movements in the coming days should sit on the sidelines and wait for the market to break through this recent retreat, according to analyst Pentoshi, who released the following chart showing Bitcoin’s short-term rally at $ 52,000.
While Pentoshi sees price rallying over the long term, he warns that the market can be volatile in the short term and with patience, traders may find better entry points.
“I can see BTC’s short-term trading drop to $ 52,000, but I think if you wait a few days / weeks you will avoid the drop. Buy at prices in the low to mid range of $ 40,000. Don’t give any reason to run new longs here. ”
The independent market analyst Scott Melker has demonstrate Price levels that traders need to keep a close eye on.
“My general opinion:
- Bullish again over $ 53,000
- Below $ 42,000, it goes back to $ 28,000
Everything between the 2 numbers is currently fluctuating differently, which will scare traders. People will be super bullish at 53,000 and panicked at 42,000 if both are hit. “
Strong support at $ 40,000
The weekly insights into Bitcoin price action provided by market analyst Rekt Capital have highlighted key areas of support and resistance that traders should keep an eye on.
#BTC Closed weekly above the little red area that BTC previously recovered from$ BTC threatens to lose this area, but no confirmed breakdown
Just below this area is the orange region, an area of heavy demand that completed two -25% corrections in February and September#Crypto #Bitcoin pic.twitter.com/uODkPN0SEZ
– Rekt Capital (@rektcapital) December 6, 2021
“BTC closed weekly above the small red zone, from there it recovered again.
BTC threatens to lose this zone, but no collapse has been confirmed.
Just below this area is the orange zone, an area where heavy demand in February and September successfully blocked two 25% corrections.
Bitcoin could drive investors insane with a price cap of $ 53,000
Investors, not short-term traders, are likely to benefit from Bitcoin’s upcoming moves.
Filbfilb, co-founder of the Decentrader exchange suppose i think:
“December has a high chance of volatility, an ideal time to stay out of the market, make some well-thought-out trades, and recharge for the year ahead.”
The analyst’s comments are similar to those of trader Pentoshi, who stormed December 6th while admitting that Bitcoin could still fall to $ 30,000.
Wouldn’t be surprised if that happened for you $ btc. It’s a real possibility. I would be prepared for it https://t.co/Qw4XggiDdV
– Pentoshi (@ Pentosh1) December 6, 2021
“It wouldn’t be surprising if this happened to Bitcoin. It’s a real possibility. I will prepare for it. “
This would mean that BTC / USD would fall back to the level of early 2021 and be more than 50% below the all-time high of the year (ATH).
While Wall Street opened on December 6 with no impact on Bitcoin, markets remained relatively stable as stocks rose slightly.
When critics targeted Bitcoin’s alleged inability to function as a store of value, proponents sought clues as to its relative market valuation after the sell-off.
For analyst Willy Woo, the on-chain data says it all.
“The market is trading at a pretty steep discount.”, said Willy Woo, highlighting the Bitcoin Supply Shock Valuation (SSV) index.
SSV considers for the last time that on-chain demand was at current levels with the implication that prices would be higher under the current circumstances.
This model is a look back at earlier times when #bitcoin had similar on-chain demand.
We are currently trading at a reasonable discount.
It is an investor, not a trader, model that can be easily liquidated long before the model goes into effect. pic.twitter.com/w9byxBiX6M
– Willy Woo (@woonomic) December 6, 2021
“This pattern reminds me of earlier times when Bitcoin had similar on-chain requirements. We’re trading at a pretty steep discount right now. It’s a model for investors, not traders, which can easily be liquidated before the model goes into effect. “
Woo previously noted that the recent decline was accompanied by retail investors who increased their exposure to Bitcoin.
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