Bitcoin reaches for $47K as analysts agree BTC price consolidation cannot last

The price of Bitcoin reached for the $47,000 mark on Sunday evening after analysts agreed it would not be able to stay at this level. The market has a history of dropping back down within hours and then going up again. There are many reasons people believe that BTC cannot hold its current value but there is no guarantee what will happen next as prices continue to fluctuate wildly in the coming weeks.

Bitcoin price reached $47,000 in the last 24 hours. Analysts agree that BTC price consolidation cannot last and that we will see a new all-time high soon.

On Jan. 5, Bitcoin (BTC) rebounded from new lows of $45,550 as observers waited for a “squeeze” to re-ignite new volatility.

Bitcoin reaches for $47K as analysts agree BTC price consolidation cannot last1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.

Analysts estimate the value of “fakedown” at $40,000.

At the time of writing, data from Cointelegraph Markets Pro and TradingView showed BTC/USD on Binance recovering to the previous day’s levels around $47,000.

The repeated drops had failed to faze market players, who were now looking forward to a sharp move up or down in the coming weeks. They had predicted volatility amid a period of flat financing rates and record-high open interest on futures markets on Tuesday.

In part of his remarks on Bitcoin’s Bollinger band chart, analyst William Clemente predicted, “Think we enter a volatility squeeze towards the end of the month.”

Bollinger bands, a prominent indicator that Clemente called one of his “favorite” tools, employ two standard deviation bands around the Bitcoin current price to predict when volatility may occur.

Bitcoin reaches for $47K as analysts agree BTC price consolidation cannot lastAnnotated chart of BTC/USD with Bollinger bands. Source: Twitter/William Clemente

However, the issue this week was whether the shift would be upward or downward.

“If we see the similar setup from late July and the initial pop down to the low 40s out of a squeeze,” Clemente continued during a talk on the outlook.

A following article revealed the most probable source of the $45,550 drop: a trader’s unsuccessful effort to short the lows, followed by a repurchase.

Bitcoin reaches for $47K as analysts agree BTC price consolidation cannot lastChart of the Bitcoin Volatility Index. Coinglass is the source of this information.

Candles with red herrings

Those searching for opportunities on the upside, on the other hand, focused on macroeconomic issues. Bitcoin has not yet completely responded to inflation, which had been running hotter than expected.

As BTC withdrawals start in January, Bitcoin exchange balances are trending back to record lows.

In a recent post to Telegram channel members, trading company QCP Capital said, “View-wise, we are still holding out for an upward move in the near-term.”

“There has been a major divergence since end-December in the 10-year breakeven inflation rate (which has traditionally had a strong association with BTC). We might see a surge towards 60,000 if BTC catches up here.”

The consumer price index (CPI) statistics for December will be released next week, providing inflation signals.

“BTC has never looked like this towards the conclusion of a bullish cycle. Since its creation, there has never been a day when “The Galaxy’s bullish streak continued on Tuesday.

“It usually lowers dramatically and doesn’t rebound quickly.”

Galaxy noticed periods of consolidation after price peaks throughout Bitcoin’s history and concluded that the $69,000 high in November could not rationally be considered a multi-year high. 

“We’re in a consolidating phase before the next big move upward,” he continued.

Bitcoin reaches for $47K as analysts agree BTC price consolidation cannot lastAnnotated BTC/USD chart. Galaxy/Twitter source

Watch This Video-

Bitcoin has been on a tear lately and reached an all-time high of $47,000. This is causing altcoins to fall in value. The market is expecting Bitcoin to consolidate, but analysts disagree. Reference: why are altcoins down today.

Related Tags

  • bitcoin will drop to $25k
  • bitcoin to $288k
  • altcoin selloff
  • bitcoin altcoin cycle
  • bitcoin to 25k
Previous How a coastal town on the Portuguese Riviera modeled a coin for the post-pandemic economy
Next Best 7 Crypto Airdrops to Participate in