Bitcoin price fluctuations don’t come off as a surprise to anyone since this has been going on for a very long time. However, Bitcoin’s repeated visits to the sub-$37,000 range have reinforced the views of different analysts of Bitcoin that the cryptocurrency is properly set for further downside or a very lengthy consolidation process.
The cryptocurrency market is certainly on the red line once again on the 2nd of February as all the global markets in the financial sector have been seeing a lot of increased volatility in the front of cryptocurrency. Some data provided from different crypto-trading shows that Bitcoin has once again experienced a price drop and reached $38,200. Again, Bitcoin was hit with a sudden selling wave that pushed the price to $36,800.
Different analysts are making assumptions and predictions about the price fluctuations taking place with Bitcoin.
If Things Go Below $36000, The Bulls Might Be In Trouble
Insight into the major support and resistance zones of note for Bitcoin was provided by crypto trader and pseudonymous Twitter user ‘HornHairs,’ who posted the following chart indicating a solid level of support near $37,400.
According to the analyst, after finding support at this level, “a move back to $38,000s is just a bearish retest unless we can reclaim $38,700.” That being said, a bearish move could witness the price continue to dip while it has been indicated that bulls might be in trouble below $36,781.
HornHairs said, “A drop below $36,700 and a move to take out range low seems likely, seeing as we took out the range high yesterday.”
Will A Fourth Attempt Be Able To Change The Things?
A look at the descending price action for BTC since topping out in November was provided by crypto trader and pseudonymous Twitter user ‘Daan Crypto Trades‘, who posted the following chart highlighting the difficulty Bitcoin has had at breaking above this trend. Several people are making different assumptions about cryptocurrency, which is all due to the certain fluctuations that have been taking place with Bitcoin. What the future holds for the cryptocurrency that has been previously ruling the world is completely unknown. That is why most analysts are trying to make different predictions about Bitcoin.
Daan Crypto Trader said, “Everyone seems to be watching this same line now, which could cause some fakeouts. So be cautious about that. It’s currently testing the diagonal for the 4th time. When will it break? “A fully intact bull market that is consolidating”
A forward-looking analysis on what could come next for Bitcoin was summarized by technical analyst and pseudonymous Twitter user ‘Decodejar,’ who posted the following chart outlining a possible move lower for the top cryptocurrency.
According to Decodejar, the common chart that different people have analyzed contains a “bearish ABC wave 4 expanded flat, ending below last year’s lows.”
While this might be a pretty common pattern with Bitcoin, Decodejar indicated that “there’s not much volume for an impulse,” and he doesn’t “think we break last year’s lows.” Decodejar mentioned, “What this all boils down to is that the correction is likely almost done at these levels, even if the market needs more time. I do not see a bear market; in fact, I am sick of hearing it. I see a fully intact bull market that is consolidating.” The overall cryptocurrency market cap now stands at $1.729 trillion, and Bitcoin’s dominance rate is 41.1%. The Bitcoin market has been seeing a lot of ups and downs for a very long time, and that is one of the main reasons the analysts might be thinking that the currency is going to experience a certain kind of downfall.