Here’s why analysts expect ‘choppy’ Bitcoin price action between $42K and $53K
Bitcoin’s price has been in a low-volume sideways channel for the past few weeks, with no sign of an imminent breakout. The bears have control and analysts are pessimistic about Bitcoin breaking out from this range anytime soon.
Bitcoin price prediction is not an easy task with Bitcoin’s volatility. Analysts expect “choppy” Bitcoin price action between $42K and $53K. Read more in detail here: bitcoin price prediction.
The larger cryptocurrency ecosystem is in a state of dread on Dec. 6 as the market sell-off on Dec. 3 continues to send shockwaves across the industry, and Bitcoin (BTC) stays trapped below $50,000.
Bulls are holding BTC above $49,000, according to data from Cointelegraph Markets Pro and TradingView, although the broader trend implies that more consolidation days are ahead.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Take a peek at what experts are predicting for the Bitcoin price in the next weeks.
The lower $40,000s have a lot of support.
Rekt Capital, a market analyst and pseudonymous Twitter user, gave insight into Bitcoin’s weekly price activity by posting the chart below, which highlights the important support and resistance zones traders should keep an eye on.
1 week chart of BTC/USD. Twitter is the source of this information.
According to Rekt Capital,
“BTC Weekly closed above a modest red area from which it had previously recovered. BTC is in danger of losing this territory, although there has been no verified collapse. The orange zone, just below this, is a strong demand sector that concluded two -25 percent corrections in February and September.”
Recovery to $52,000 in the short term
According to analyst and pseudonymous Twitter user Pentoshi, who posted the following chart suggesting a short term recovery in BTC price to $52,000, traders looking to avoid choppy price action in the days ahead would be wise to sit on the sidelines and wait for the market to digest this latest pullback.
1 day chart of BTC/USD. Twitter is the source of this information.
While Pentoshi sees a longer-term rebound, he cautioned that the market may be bumpy in the near term, and that traders who stay patient may find a better entry time.
According to Pentoshi,
“I see BTC trading back around $52,000 in the immediate term, but I believe you can escape chop if you wait a few days/week.” Purchase in the low to mid $40,000 range. Avoid being entrapped. At this time, I don’t see any need to open additional long positions. I’m going to sit tight and wait for a fresh deal to come my way.”
Bitcoin’s $53K BTC price barrier might ‘drive people insane’ for months, according to one expert.
Expect to pay between $42,000 and $53,000 for “chop.”
Independent market analyst Scott Melker provided a last piece of advice in the form of the following tweet, which lays out the price levels traders should keep an eye on.
>53K restores the bullish case, whereas 42K reintroduces 28K.
Everything between the two figures is now ranging wildly, causing traders to fear.
If either level is met, people will be exceedingly optimistic at 53K and bearish at 42K.
— Scott Melker (@scottmelker) on December 6, 2021
Melker highlighted the range between $42,000 and $53,000 as the choppy zone that would drive traders crazy, while a breakthrough above that zone is a bullish indicator, as shown in the accompanying tweet. Prices below $42,000, according to Melker, would suggest that bears will have the upper hand in defining BTC price for the foreseeable future.
The total cryptocurrency market capitalization is currently $2.285 trillion, with Bitcoin commanding 40.6 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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