Bitcoin

Critical Levels For Bitcoin (BTC) Price! What’s next $50K or $30K?

Written by: Delma Wilson

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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Jan 10, 2022

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The crypto market is in a strange state of confusion as a result of the BTCs trajectory during the last few months. After reaching an all-time high of $69,000 in early November, Bitcoin has generally been in a decline, with lower highs and lower lows.

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Bitcoin fell to $42K after a flash drop on December 4th. When the same price level was tested again on January 7, the market’s mood changed dramatically.

BTC plunged almost 30% from its all-time high of $69,000 in December, while CME BTC Futures volumes fell by 77.4% to $11 billion, the largest monthly drop ever. 

According to the Bitcoin Fear and Greed Index, the market sentiment when BTC approached $40K was one of ‘extreme fear.’ In fact, it hit a new low for the first time since July of last year.

In addition, over the last week, more Bitcoin has entered exchanges, indicating a modestly pessimistic shift in investor mood. 

$30K or $50K?

BTC’s price movement presently resembles that of February-May, when the price achieved four tops while the Relative Strength Index reached lower highs. BTC’s drop to $30K in May was caused by four price tops establishing lower highs, as well as the RSI mimicking a similar downturn.

BTC bulls’ last hope for a substantial reversal appeared to be the $40K support at the time of writing, provided the same holds and BTC can reproduce gains. There is, however, a larger negative trend line to overcome.

For the time being, a reversal in MVRV 365 days is a good reversal opportunity. However, if the price does not hold, bullish expectations will be disproved. 

If Bitcoin concludes the week below $40K, there’s a good chance it’ll test the $30K support in the near future. A pivotal reversal of the $40K mark could determine BTC’s path forward. 

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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