Bitcoin has largely stabilized during a week of volatile trading, with the cryptocurrency’s price sitting at $42K after briefly dipping below that figure. The Bitcoin markets have been on edge due to divergences between short and long-term moving averages for over two weeks now, starting in July when BTC was valued at just shy of $6K.
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The “bitcoin price correction 2021” is a prediction that Bitcoin will stabilize at $42K in the next few years. This prediction comes after the key moving average broke from July, which has been a sign of an impending correction for Bitcoin.
Prior to Wall Street’s opening bell on Jan. 7, Bitcoin (BTC) stabilized over $42,000, as further parallels to last year’s lows appeared.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
BTC’s conduct is “very similar” to May’s.
As BTC/USD averted another retest of $40,000 support, data from Cointelegraph Markets Pro and TradingView revealed a cautious Bitcoin market.
Analysts have previously warned that a further capitulation event may occur if the pair fell below $41,000, with the pair potentially dropping to $30,000 or even lower.
That number is accurate for market players, since it represents the bottom of a long-term capitulation that lasted from May to July of last year.
Then, as now, miner unrest coincided with macroeconomic reasons to momentarily halt the Bitcoin bull market’s pace.
In a series of tweets on recent market behavior, trader and analyst Rekt Capital stated, “BTC is closely tracking May 2021.”
He highlighted that BTC/USD had broken through the 50-week exponential moving average (EMA) on Friday, similar to the mid-July move that marked the bottom of that capitulation period. On the day, the 50-week EMA was $45,000.
The #BTC capitulation event is now taking place below the blue 50-week EMA$BTC #Crypto #Bitcoin pic.twitter.com/KGvl2ogbGO
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January 7, 2022 — Rekt Capital (@rektcapital)
Meanwhile, Michaal van de Poppe, a Cointelegraph writer, pointed out the discrepancies between the two stages.
This time, a “rapid correction south” suggests that the present market is not characterized by extended sideways movement and a breakout to the upside from 2021.
“The $46,000 level is still a critical one to keep an eye on. If that one breaks, I believe the bear market or downturn is gone, and we should be looking for upside possibilities “During his most recent YouTube post, he said.
A trader on Ethereum is considering a $2,200 buy-in.
After warnings that any recent big increases were likely a red sign — a bull trap — altcoins also had problems on the day.
According to a poll, the top popular terms on social media are ‘dip,’ ‘buy,’ and ‘fed.’
Ether (ETH), the biggest altcoin by market size, was trading at $3,000 at the time of writing, down 4.5 percent in a week.
1-day candle chart of ETH/USD (Bitstamp). TradingView is the source of this information.
Some of the top ten cryptocurrencies by market capitalization managed to avoid the slump, with Cardano (ADA) rising 1.2 percent to $1.23 and XRP remaining unchanged.
Pentoshi, who is still cautious, has identified levels as low as $2,200 for purchasing ETH, which he expects to reach “sometime this year.”
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Bitcoin has stabilized at $42K as the key moving average break from July reappears. The price will drop, but it is not going to crash. Reference: bitcoin price will drop.
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