Bitcoin Price Consolidating for a Major Push, Is $40K on the Cards?

Bitcoin price had a giant rally ever since the start of 2021 which escorted the price to the highest levels above $41K. The correction phase led the asset to trend in a narrow range after a slight plunge.BTC price, however, has been on decisive phase and also has recovered remarkably.

Miners Garden
Miners Garden

The price is expected to surge notably from the current levels as predicted by one of the analyst Alanmasters. According to the analyst, the corrections of the BTC price compared to that of the rally is very small and hence it is expected to surge further after a small consolidation.

BTC trading chart

As per the chart put up by the analyst, the chart is having some mixed signals which manifest the possibility of hitting above $40K yet once again. The bitcoin price did not swell beyond the resistance levels formed at ATH, neither there are any follow-up drops that are more severe than that of the drop that occurred on January 10 and 11.

Therefore, it appears that traders and bulls currently are having a fun time by just watching the market trend and not being in action for some time. Some analysts believe that this phase would continue for some more couple of days, until the price finally takes off towards the target set beyong $40K.

Why is Bitcoin Price Trending Sideways?

The price of any asset attracts the traders only if it showcases it’s higher levels of volatility. Woefully, Bitcoin in the past few days appears to have consolidated with less fluctuation. And hence the short term traders might have extracted their profit and shifted their focus on other altcoins. 

No doubt, Bitcoin is manifesting a strong signal of a major bull run in the coming days, but currently, the other altcoin rally and dipping Bitcoin dominance might indicate the Altcoin season of 2021 is approaching very soon. 

One of the popular on-chain Analysis platform Santiment revealed the current strategy of the traders due to which the prices are trending sideways. And it’s HODL!!!

According to the platform, as the Bitcoin price was approaching the ATH, many dormant coins were being moved. As the price started consolidating, the assets were back being dormant reducing the age consumption of Bitcoin. 

It was believed that the Bitcoin Monster rally is short-lived, which is however demolished by the current price trend by not declining below $35K. As the surge is expected to hit the highest levels in 2021, the bitcoin price rally may not only touch $40K but also hit $50K in the coming weeks.

Source: Read Full Article