What’s Next For Bitcoin Prices After They Reached Their Highest In A Month?
Bitcoin prices climbed today, reaching their highest value since January 5 as the sentiment of investors grew more robust.
The world’s largest digital currency by total market value climbed to more than $44,500 this afternoon, CoinDesk figures reveal.
This figure compared to an intraday low of less than $42,300 close to 4:30 a.m. EST, additional CoinDesk data shows.
After rising to a more-than one-month high, bitcoin prices pulled back, experiencing some rather modest declines and dropping close to $43,500 this evening.
At the time of this writing, the digital asset was trading close to $44,000.
[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.]
Following bitcoin’s recent price movements, several market observers highlighted key technical levels, as well as other important factors, when emphasizing what traders need to know.
Mark Elenowitz, co-founder of Ethereum-powered exchange Upstream, offered some insight on the situation.
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“The next point of resistance, I suspect, is around $46,000. If that is broken, then we could very easily swing past $50,000.”
“But if that isn’t broken in the coming days, then support seems to be hovering at around $38,000. And if the latter plays out, then we could be in for a few weeks of range-bound price action.”
Ben Armstrong, founder of BitBoy Crypto, also weighed in on the matter.
“Right now many crypto analysts are warning about a possible Bitcoin bull trap. The sentiment in crypto has turned very quickly and many investors are hopeful for a renewed bull run,” he noted.
“The number to watch for here is $46k-$47k. Many people have been targeting this range for a relief rally before further downward action and possibly a retest of the $29k level,” said Armstrong.
“We should be looking for Bitcoin to hold the $40,000 level as support to fend off a larger downswing.”
Katie Stockton, the founder and managing partner of Fairlead Strategies, LLC, also offered some insight in her daily note.
“If today’s breakout holds tomorrow, a bullish short- term bias would be dictated with next resistance near $46.7K based on a Fibonacci retracement level,” she stated.
Her note offered further detail on the crypto markets:
“From an intermediate-term perspective, we are moving from bearish to neutral, noting there is a weekly oversold upturn and a more pronounced loss of downside momentum.”
“That said, we see risk of additional corrective price action in the equity market that could be a drag on risk assets, in general,” said Stockton.
“Bitcoin shares a loss of long-term momentum with the equity market, suggesting a wide trading range has unfolded in which shorter-term views will shift.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.