Published
2 months ago on
February 07, 2024
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It’s still far too early to call it, but it is starting to look like up and to the right for crypto and a continuation of the bull market as we approach the halving in April.
The sell the news event after the announcement of the approval of several Spot Bitcoin ETFs certainly did cause a substantial downturn for bitcoin and for the crypto market in general. However, the 21% decrease in the $BTC price was seen by some as probably not substantial enough.
The bullish scenario
Source: Coingecko/Trading View
That being said, $BTC is currently trying to break out of the downward trend line from that ETF announcement top, and the resistance at just over $43,000 could be pierced through and held above this time.
The next target would then likely be $44,300, with a potential assault on the yearly high of $49,000 above this. It’s just that the question remains whether $BTC has enough buying pressure to come in for this to become a reality?
The downside scenario
Source: Coingecko/Trading View
On the other hand, if the price is checked at $43,000, $BTC is coming to the end of a triangle formed by the aforementioned trend line, and the bullish trend line it has been respecting since October of last year. Something has to give, and a decisive break one way or the other should happen.
If the break is downward, $39,000 can perhaps hold the price again like it did towards the end of January. If it doesn’t, then we will be in for a greater retrace, perhaps even as far as to $30,000.
Just a bump in the road
All this being said, bitcoin is very much in the early to mid stages of its bull market phase. If the price should go all the way down to $30,000, this will be considered as a very healthy move, and buying is likely to come in heavily at this level.
Therefore, if we do see this retrace, it might be akin to a small bump in the road in the grand scheme of the crypto bull market. Up and to the right is still likely to be the path for crypto, even if that path may be mined with the odd few corrections.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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