Market

Bitcoin quickly slides below $42,000, but…

Bitcoin is in free fall again as price falls to $41,600 but analysts are still waiting for “an upward move”.

The cryptocurrency market continues to show erratic volatility and sideways movement, with Bitcoin losing $42,000 yesterday (Jan. 17). Across the market, trading volume continued to decline and US financial markets were shut down due to the Martin Luther King Jr. holiday.

BTC/USDT daily frame price chart | Source: TradingView

Here’s what analysts are saying about Bitcoin’s price action and the impact of yesterday’s correction on the market structure.

Key resistance at $43,120

The weekly bitcoin price action analysis provided by crypto analyst Rekt Capital shows that bitcoin is trading near solid support and resistance areas

https://twitter.com/rektcapital/status/1483116310259281923?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“BTC’s recent weekly close shows that 43,120 (black) is seen as new resistance. Technically, it remains in the upper part of the current range of $38,000 to $43,100.

Bitcoin’s 4-year cycle is starting to lengthen

Market analyst Michaël van de Poppe discussed the long-term trend of Bitcoin, considering Bitcoin 4-wave pattern and realized cap HODL waves. According to the analyst, Bitcoin’s typical 4-year cycle is likely to expand.

https://twitter.com/CryptoMichNL/status/1483110615426248713?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“Honestly, it would make a lot of sense. This cycle is longer than the previous one. The 4-year cycle no longer occurs due to the impact of macroeconomics. Therefore, this cycle will be higher and longer than one would expect. Bitcoin is bullish.”

There is at least one more upside impulse

The sentiment of an extended Bitcoin price cycle was echoed in a tweet from analyst Techdev that provided Analyzing the bull market’s ‘momentum and correction’ based on new on-chain address trends.

Number of new bitcoin addresses and impulse waves | Source: Twitter

Compared to the previous impulse waves outlined by Techdev, Bitcoin will still have a price breakout (in green) in the current cycle before resetting and starting the next cycle.

“In my opinion there should be at least one more bullish impulse before a downtrend (bear market) begins.”

The total crypto market cap is currently $2.02 trillion and Bitcoin’s dominance is 39.6%.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.