Bitcoin Rebounds Above $40,000 as Analysts Predict Further Dip, Other Cryptocurrencies Follow Similar Trend
Summary:
Bitcoin rebounded above $40,000 after it dipped below the mark on January 22, but analysts predict further decline. The dip was attributed to significant liquidations from Grayscale Bitcoin Trust. However, according to JPMorgan analysts, GBTC's profit-taking phase is largely complete, offering a respite to Bitcoin. Price examinations of Bitcoin and multiple altcoins show that they are at significant support levels that may hold up. Similar trends are seen in Ether, BNB, XRP, Cardano, Avalanche, Dogecoin, Polkadot and Chainlink. Investment and trading moves carry inherent risks, hence thorough research is highly recommended.
On January 22, Bitcoin (BTC) experienced a decrease, going below the $40,000 make. However, the dip did not last as the cryptocurrency rebounded above $40,000, even though a number of market analysts still foresee further decline. Chris Burniske from Placeholder, a cryptocurrency venture capital firm, stated that Bitcoin could possibly hit mid-to-high 20,000 levels before we see a bottom.
One of the main reasons for the recent dip in Bitcoin is due to large-scale liquidations from the Grayscale Bitcoin Trust (GBTC). A report released by JPMorgan analysts on January 25 notes that most of the profit-taking in GBTC has already taken place, hinting that the downward pressure on Bitcoin might alleviate soon.
Bull markets experience their fair share of downswings which can lead to panic selling, creating opportunities for more resilient investors to buy at lower prices. In a bear market, waiting to see if a support level holds before buying is generally a safe strategy. Bitcoin and several altcoins are currently at some important support levels that might hold up.
Assessing the Bitcoin price, we observe that buyers pushed the price up near $37,980 on January 23, leading to a price of about $41,904 average on January 26. Traders should prepare for a tug of war between bull and bear traders around these average levels. If the price climbs over the 50-day average ($42,904), we may see it reach up to $44,700. However, if price drops from current levels, it may hover between $44,700 and $37,980 for some time. Below $37,980, the price may fall towards $34,800.
As for Ether, a bounce off $2,168 is being fiercely defended by bullish traders. Overhead resistance and a continuing decline may suggest selling on rallies, bringing the price further down to $2,100. To the contrary, a move above the moving averages could suggest a lightening of the selling pressure, giving momentum to a rally towards $2,400. A similar case is observed in BNB, XRP, Cardano, Avalanche, Dogecoin, Polkadot and Chainlink prices.
Finally, it is noted that every investment and trading move comes with its own risk, advising readers to do their own thorough research prior to taking decisions.
Published At
1/26/2024 8:40:04 PM
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