A little rest for Bitcoin – Despite a nice day following Elon Musk’s tweet, the last few weeks have been similar for Bitcoin. The king of cryptomoney is still well anchored in a trading interval and we’re looking forward to the next big move.
After a thundering winter that saw the king of the cryptomoney houses jump from $10,000 to over $40,000, Bitcoin is catching its breath and resting. It’s been almost 4 weeks now that BTC has been trading in the $30,000 – $38,000 range. We would like to see a clear resumption of the trend, but like any consolidation, the longer the better.
After its peak at $42,000, Bitcoin has corrected by almost 30%, which is still a normal correction even in a bull market as we noticed here. In weekly trading, the trend remains bullish and the price is currently forming a lower low (a higher trough), playing rather in favor of a continuation of the trend.
Bitcoin is trading at $34,300 at the time of writing, just over 20% of its ATH.
On a daily basis, Bitcoin’s trading range is fairly well defined. The area below $30,800 serves as a support and the rare incursions below $30,000 remain good buying opportunities. While sellers are currently showing up in the $37,000 – $39,000 zone.
As long as the price continues to consolidate in this range, we can consider that we are still in the uptrend launched since September. We will watch for any closing outside this zone to confirm or deny a resumption of this trend.
We are consolidating, we are consolidating… For the moment, Bitcoin remains wisely in a phase of contraction and we are looking forward to the next phase of expansion, hoping that the price will move north again!