On Wednesday, all of the main cryptocurrencies saw strong gains. Last week, cryptocurrency prices plummeted, with Bitcoin falling to a nearly six-month low.
On January 26, however, Bitcoin price recovered, shocking both the market and investors. It is now trading up by 2.6% at $37K level. In tandem, other tokens are on the rise too.
Bitcoin Price Action
The price of bitcoin managed to stay above the $35,000 mark and began to recover. BTC has moved into a short-term bullish zone after breaking above the $36,000 resistance level.
It’s currently consolidating near $37,000 and trading above the 100 hourly simple moving average.
On the upside, the $37,400 level serves as an early resistance. The first significant resistance zone is at $38,200. A break over the $38,200 resistance on the upside might signal the start of a prolonged rising trend.
The next major resistance mark is near $39,200, above which the bulls may attempt a test of $40,000.
If bitcoin does not begin a new upward trend over $38,200, it may begin a new downward trend. On the downside, $36,800 serves as immediate support.
Near the $36,000 zone and the 100 hourly SMA, the first substantial support can be seen.
One More BTC Price dip on the Cards?
Bitcoin (BTC) is due for another price drop, according to a famous crypto analyst and trader. Capo, a pseudonymous analyst, tells his Twitter followers that he believes Bitcoin will fall below $30,000 before recovering.
Capo, on the other hand, feels the bull market is officially gone if Bitcoin consolidates below $30,000.
“Consolidation means clean high timeframe close below this level, or a break + flip from support to resistance.”
According to the analyst’s chart, Bitcoin looks to be following the market structure of the S&P 500 on a two-week timeframe from 1999 to 2009. A decline below $30,000, if BTC follows the script, puts Bitcoin in a position to rally to new all-time highs.
The analyst points out that Binance futures have seen a lot of supply added, which contributes to his assumption that Bitcoin will fall below $30,000.
If Bitcoin consolidates above $41,000, he believes the sub-$30,000 prediction will be invalidated.