29 Jun Bitcoin dips below $42K as new forecast says breakout ‘most probable outcome’ for BTC price
After a prolonged period of sideways movement, Bitcoin has experienced several days of losses on the back of recent news that regulators in China may ban cryptocurrency exchanges. The price dip comes amid expectations for more clarity from authorities and increased volatility around cryptocurrencies at large.
Bitcoin has been struggling with a range of problems recently. The price is dipping below $42K and it’s looking like the breakout “most probable outcome” for BTC price. Read more in detail here: will bitcoin rebound in 2022.
On Thursday, Bitcoin (BTC) moved back around $40,000 after bulls were unable to breakthrough $44,000 barrier.
1-hour candle chart for BTC/USD (Bitstamp). the TradingView website
Buying an additional dip
Cointelegraph Markets Pro and TradingView data revealed a 4 percent loss in BTC/USD over the course of one day on Friday.
Before the retracement began, the pair had reached a high of $44,450 on Bitstamp, with local lows of $41,780.
Analysts didn’t seem startled by the move, which they suggested might be resolved by a further test of the $40,000 support, although being frustrating for those who hoped that the worst of the retreat was over.
The general direction of #Bitcoin. Image source: twitter.com/VY0BkTXYOM
By Michal van de Poppe on January 14, 2022 (@CryptoMichNL).
Popular trader Pentoshi also seemed to achieve his wish, when BTC “swept” lows below $42,000 in what he had earlier highlighted as a key entry point. He indicated that $46,000 may come up next.
However, another “death cross” chart build on BTC/USD, a traditional indication foreshadowing negative circumstances, loomed big.
A death cross happens when the 50-day moving average in decline crosses below the 200-day moving average, as Cointelegraph previously reported. Although the trait is rather uncommon, it hasn’t always been followed by bearish behavior.
1-day candlestick chart for BTC/USD on Bitstamp with 50-day and 200-day moving averages. the TradingView website
Positive outcome is still possible.
Analysts at trading suite Decentrader are still optimistic about the near-term price trend, despite the possibility of another slide into the $30,000–$40,000 region.
Related: Which comes first? Traders disagree on whether Bitcoin will continue to increase.
In a market report released on Friday, they said that the two-month downtrend from early December was vulnerable to disturbance and that an upside was “probable” over a cascade down.
“In our opinion, there may still be some range between $44,000 and maybe $38,000 before a breakthrough occurs. Any traders that attempt to anxiously front-run large swings before they are ready would likely suffer more from this range, “the update was summed up.
Decentrader said that it was encouraging to see financing rates gradually becoming more consistently negative as expectations for more fall changed, creating favorable circumstances for an upward squeeze.
“Given the current fundamentals of Bitcoin and the size and consistency of the downtrend over the past 2 months, we do believe that a move out of the range to the upside is the most probable outcome eventually.”BTC funding rates chart. Source: Coinglass
The “cointelegraph price analysis” is a cryptocurrency news website that has released a new forecast for the Bitcoin price. The site says that the breakout is most probable outcome for BTC price.
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