Bitcoin prices may be headed for short-term gains, said several analysts. (Photo by Dan … [+]
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Bitcoin prices suffered a modest pullback today, falling roughly 10% in less than 24 hours and trading at their lowest in more than a month.
The world’s most prominent digital currency dropped to $42,503.88 around 5:30 p.m. EST, CoinDesk data shows.
At this point, the cryptocurrency had declined approximately 9.7% since reaching an intraday high of more than $47,000 this morning, additional CoinDesk figures reveal.
Since then, bitcoin prices have bounced back somewhat, rising to more than $43,750 close to 8:30 p.m. EST.
Following these latest price movements, where is the digital asset’s price likely to go next? Several market observers shed some light on the matter.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“While this week’s drop in Bitcoin has been severe, the downtrend in Bitcoin has been well-established since November 2021,” said David Keller, chief market strategist at StockCharts.com.
“This pattern of distribution has pushed the price down below the early December low around 44,000,” he stated.
“Price support should be expected between current levels and the September 2021 low around 40,000.”
Pat White, cofounder and CEO of Bitwave, also spoke to the matter.
“Bitcoin’s run down from 69k has been like they describe war, long moments of sideway boredom interrupted by days of sheer terror,” he stated.
“Obviously each 10k notch is worth watching, 40k is the next natural floor,” said White.
“There is most likely a pretty stable floor in this range – as all things crypto were taking off last year, a lot of businesses and institutions were genuinely worried they missed the train.”
“Additionally, investors also likely began thinking about their tax bills and have started liquidating/ taking profits.”
Collin Plume, CEO and founder of My Digital Money, also commented on the situation, identifying some key technical levels.
“Bitcoin will see a key level of support at $45,000 – where it will sit comfortably for a while – and see resistance at around $55,000,” he stated.
Plume also weighed in on how altcoins (digital currencies besides bitcoin) are affecting the world’s most largest cryptocurrency by market value.
“If we take a step back and look at the bigger picture, Bitcoin’s recent volatility can be connected to the rise of altcoins such as Solana, NEO, and Cardano. These altcoins are distributing the interest of investors and creating a healthy and competitive market.”
“I suspect that once the dust settles around these altcoins, Bitcoin will regain its momentum in 2022.”
White also weighed in on what the future might hold for this digital currency, offering a bullish outlook.
“If you think of the movement today as mostly technical (there wasn’t really any major news that would cause this and other tokens are holding their own pretty well), then you’re going to see a lot of people excited to get in on the bargain sale,” he said.
“I expect we see a pretty quick bounce back off this, though don’t be surprised if we see a rebalancing into Ethereum, Solana, and other tokens.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.