Profit Taking Affects Current Market Movements
The Bitcoin price range has become significantly more subtle over the last several months as it has grown in popularity as a cryptocurrency. It is currently valued at $42,398.83 as of Sunday.
On Saturday, the BTC/USD exchange rate increased by 7.07%. Bitcoin ended the day at $42 414, up 3.54% from Wednesday’s low.
According to analysts, investors are in profit taking mode this week, rapidly eroding daily gains and capping the market at around the 45K level.
Bitcoin fell to an intraday low of $43,917.4 Saturday morning before recovering. Late in the day, a new high of $48,598 was set, surpassing the previous high of $43,284 set earlier in the day.
Despite concerns about the global economy and rising inflation, investors are attracted to Bitcoin’s (BTC) price movement.
Quick Bitcoin Price Analysis
Bitcoin would have to avoid a break below the pivot level of $45,841 in order to activate the first major resistance level at $48,765.
The crypto would require broad market support to break out of this new swing high of $48,945. Unless there is a sustained crypto rally, any upside is likely to be limited by the first major resistance level at $50,000.
If the pivot level at $46,841 is breached, the first major support level at $45,084 comes into play.
However, barring a prolonged crypto sell-off, Bitcoin should avoid falling below $45,000.
BTC/USD price at $42258 on the daily chart | Source: TradingView.com
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The world’s most popular crypto would require broad market support in order to overcome the recent swing high of $48,945.
The first critical barrier level and resistance at $50,000 is likely to prevent further gains until crypto assets experience a sustained rise.
In the event of a prolonged crypto rally, Bitcoin may test the second major resistance level at $51,522. If the pivot point at $46,841 is breached, the first significant support level at $45,084 will be tested.
On the other hand, unless there is a significant crypto sell-off, Bitcoin should avoid falling below $45,000. The $42,161 mark is the second significant level of support.
Though Bitcoin appears to be recovering, it is still a long way from its November all-time high of $68,000. Despite the recent price decline, Bitcoin remains more than twice the value it was just a few years ago.
Meanwhile, despite the volatility and recent price drops, many analysts believe it will eventually surpass the $100,000 mark.
However, there are divergent views on when and how this event would occur. When it comes to bitcoin, experts advise novice investors to exercise caution when deciding whether to invest a percentage of their assets in cryptocurrency.
Bitcoin’s price has risen at a similar rate to that of other cryptocurrencies over the last several years. How much Bitcoin’s value will increase over time is a legitimate concern for investors.
Related Reading | Bitcoin Steadies Above $45k, US Inflation Comes In At 7.5% Year Over Year
Featured image from TechCrunch, chart from TradingView.com