Bitcoin, the flagship cryptocurrency has continued its bearish momentum, potentially heading to the $50,000 mark after failing to reach the $73,000 level once again. However, Doctor Profit, a well-known crypto expert and enthusiast considering the price movements has identified that Bitcoin is currently trading within a clear price range, suggesting a period of consolidation.
Bitcoin Price Range Is Clear
Starting off, the crypto analyst, Doctor Profit, addressed the ongoing notion within the crypto community that the market moves unexpectedly. According to Doctor Profit, this is not entirely right as he believes moves should always be expected, particularly now that the year has started with such a large sideways continuing.
Thus, for those new to the market, he has highlighted that BTC‘s price range is clear since it moves between $72,000 and $56,000 – $57,000, suggesting the top and bottom of the box shown in his chart. Nonetheless, some still contend within the community that the range is extremely broad.
Even though they might be right about the complexity of the range, Doctor Profit noted that when comparing important Fibonacci resistance levels with important moving averages and the ideal level of liquidity created whenever Bitcoin reaches the top or bottom of the box, this range proves to be the most accurate. Furthermore, he said that market makers have a motive for choosing this range, using the significance of the chart pattern to back up his claims.
He stated:
Market makers chose this range for a reason. You can dislike it all you want, but look at the facts and the chart, and you will notice the absolute precision of the box and the undeniable profitability of buying at the bottom of the box since the beginning of the year, and the chart is a proof for that.
Doctor Profit believes that the fears around a new Middle East crisis are driving strong selling pressure on Bitcoin lately. With speculations about whether Iran will strike back and how Israel will retaliate swelling in the crypto industry, the expert asserted that each scenario could either alleviate the market’s anxiety or increase it.
At this point, the analyst urges investors to keep an eye on those moving the most BTC rather than panic sales from weak hands, noting that major players understand that purchasing BTC at the bottom of the box, which is an accurate indicator for local bottom, is very profitable.
The Impact Of BTC’s Recent Dip Mirrors 2020
The recent decrease in Bitcoin has thrown the market into heightened uncertainty and fears, as most positions have been liquidated in the past few days. Following the massive liquidation, Mike Alfred, a crypto investor, claims the development is similar to that of 2020.
Alfred aligns the trend to a particular scenario in March 2020, when a massive liquidation during that period caused BTC to drop from the $8,000 price level to about $4,000. However, the expert is confident that the recent decline could end sooner than expected, urging investors to look out for big wicks that reverse quickly.
Featured image from Adobe Stock, chart from Tradingview.com
Powered by WPeMatico
