$ 38,000 is the worst case scenario for Bitcoin
$ 38,000 is the worst case scenario for Bitcoin.
The consequences of the most recent restrictive statements by the US Federal Reserve (Fed) about a rate hike in March continue to weigh heavily on the crypto market. The Crypto Fear & Greed Index has dropped to 18 and some traders fear the possibility of entering a sustained bear market.
Crypto Fear and Greed Index | Source: alternative
Data from TradingView shows that bears attempted to dominate the market on Jan. 5, bringing Bitcoin price down to $ 42,439.
BTC / USDT daily frame price chart | Source: TradingView
Here’s what analysts think Bitcoin could do in the next few days.
Bitcoin could drop from $ 38,000 to $ 40,000
According to Mike Novogratz, CEO of Galaxy Digital Holdings and staunch crypto advocate, this latest move is “low in volume” and underscores the fact that there is “massive demand from investors.” ”
Novogratz believes it is time to see whether the current market conditions are a good buying opportunity and assumes that the market will be volatile over the next few weeks.
“Bitcoin could bottom out at $ 38,000 to $ 40,000.”
Bitcoin is trying to set a higher low
A closer look at recent BTC price action from analyst Rekt Capital, the post The chart below compares current market conditions to those that most recently fell below the 50-day exponential moving average (EMA).
BTC / USDT Weekly Frame Price Chart | Source: Twitter
According to Rekt Captial, BTC has “penetrated the blue 50 EMA” and is currently trying to establish a new higher low (HL), which is represented by the green dashed line in the graph above.
“BTC also bottomed higher (orange) in May 2021, as it deviated below the 50 EMA. Initially, BTC held the HL, but wicking was common even below that.”
Based on the circle indicated in the chart, Rekt Capital sees the possibility that Bitcoin will fall in the $ 40,000 area.
The Bitcoin price is in the “golden pocket”
One final analysis that highlights the crucial point the market is at is provided by independent market analyst Scott Melker, who published the following chart showing BTC between the 0.65 Fib retracement level and 0.618.
BTC / USDT daily frame price chart | Source: Twitter
According to Melker, this range is known as the “golden pocket” and is “the most likely place if Bitcoin gets too long or too short and is looking for a reversal”.
“The price in the golden pocket is currently moving from USD 28,600 to USD 69,000.”
The total capitalization of the crypto market is currently $ 2.051 trillion and the dominance of Bitcoin is 39.6%.
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