Amidst the volatility of the cryptocurrency market, Bitcoin aficionados may need to adjust their expectations for a quick trajectory to the $70,000 mark. On January 28, the prevailing sentiment received a cautious brush from a prominent crypto analyst who posits that the most venerable cryptocurrency, Bitcoin, might need to retrace its steps down to a crucial support level of $30,000 before it can renew its climb.
CryptoCon, a seasoned analyst in the field, leans on historical price actions to fortify this claim. The crux of their argument centers around the idea that Bitcoin has yet to initiate a climb to a new height without first retesting its monthly least square moving average (MA). At present, this averages out to $30,358. Casting an eye on the past, CryptoCon forecasts that Bitcoin’s price may well retract to this benchmark before any significant recovery manifests.
Consistently, the MA has served as a critical foundation for Bitcoin’s pricing structure, even amidst tumultuous swings. The outlier, according to CryptoCon, was the bearish phase of 2019, a direct consequence of the unforeseen global pandemic of COVID-19.
While there are murmurs in the industry claiming Bitcoin has already hit its lowest ebb and is now positioned for an upsurge, CryptoCon suggests the evidence is scant. In harmony with historical price movements, a descent to the zone of $30,000 appears probable within February or March.
Such predictions might pour cold water on the expectations of Bitcoin investors, whose hopes have been buoyed by the United States Securities and Exchange Commission’s recent approval of multiple spot Bitcoin Exchange-Traded Funds (ETFs). Following a spellbound by heavy selloffs, including shares from the substantial Grayscale Bitcoin Trust (GBTC) by various investors and FTX—the beleaguered exchange, Bitcoin’s value found ground over the weekend. Heavyweight financial institutions such as Fidelity and BlackRock have intensified their Bitcoin acquisitions recently, an action many have interpreted as bullish.
Nonetheless, charting a contrarian path, CryptoCon anticipates a potential divergence from mainstream bullish predictions. The subsequent course for Bitcoin, whether it forms a stronger foundation for a more sustained long-term trend, remains to be traced in the unfolding market saga.
The sentiment gauge, moreover, sketches a cautiously positive picture: the Fear-and-Greed Index, a barometer of market emotion, observed a modest uptick to 55 from the prior week’s 50, a sign that bulls are not yet ready to cede their optimism. With these shifting landscapes, the interplay of fear, greed, and anticipation continues to sculpt the intricate mosaic of the cryptocurrency market.
