Bitcoin price was seen consolidating around $40,000 for quite a while now. Instead of continuing an uptrend, BTC broke its uptrend only to hover around its psychological price. Many investors started to feel wary about investing in cryptocurrencies. However, the current price-action of Bitcoin offers the perfect day trading opportunity. Not only can traders make good returns on highly predictable trends, but the stock market isn’t doing any better. In this article, we look into the opportunity of buying Bitcoin at a price below $40,000, and try to assess where prices are headed towards. So sit back, enjoy, and thank us later 😉
Bitcoin price is Consolidating – Good or Bad?
Consolidations in the trading space usually mean an oscillation of a pattern in a well-defined trading level. This alone should instigate day traders to be more active in the market. If you want to make good money while trading Bitcoin, you can simply buy at support areas and sell at resistance areas. Now the tricky part is identifying those areas!
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We at CryptoTicker love charting! In figure 1 below, we plotted many important areas to consider. But to sum up, here are the most important levels for Bitcoin:
Bitcoin Price Prediction – Will Bitcoin go up again soon?
In theory, and from a fundamental perspective, there is a lot of positive news in the crypto sphere. This alone should push cryptocurrencies and Bitcoin mostly upwards. The current lag effect is due to either profit-taking from day traders, or weak buying power from investors sitting on the sidelines.
Looking at figure 2 below, we can definitely spot an uptrend that started since reaching the low price of $33,000 earlier this year. On the other hand, the current Bitcoin price might have broken the uptrend line. This usually signals an upcoming further drop towards the next support of $36,400.
However, the current case might be a mere fakeout, where prices pick up their pace and continue towards the next important area: the $45,000.
Bitcoin Price Prediction: Should you Buy Bitcoin Today?
In any case, Bitcoin prices are expected to go higher soon. It would be a wise choice to wait for further confirmations regarding Bitcoin’s breakout or fakeout. The latter is confirmed if prices pick up again above $40,000. If this happens, then you can definitely place a buy order at current prices, with a stop-loss of around $37,800.
Recently, Goldman Sachs announced that they are considering tokenizing real assets, and already started offering Bitcoin-backed loans. This, along other positive news in the market should definitely have an impact on prices soon. We’ll follow up on Bitcoin’s price in another article and assess accordingly how to proceed.
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