Analysts believe bitcoin price is in a “take profit” zone capped at $45,000
Bitcoin price action continues to anger investors. Concerns about the global economy and rising inflation have prompted renewed warnings from the US Federal Reserve (Fed) that an upcoming rate hike could hurt market conditions more.
Data from TradingView shows bitcoin price hovering near the $43,000 support on Feb. 11 after surging 20% from $37,000 over the past week.
BTC/USDT chart 4 hours | Source: TradingView
Here’s what analysts are predicting for BTC and the broader crypto market.
“I’m waiting for a move towards $40k”
Trader and analyst Crypto_Ed_NL has provided insights into Bitcoin-related bull and bear scenarios. I did post The chart below outlines two possible price paths.
“Check out my latest chart showing the current situation. Nothing changes. Expect a move towards $40,000. Bullish scenario points to a jump to $48,000. The downtrend occurs if BTC breaks $40,000.”
BTC chart/USDT 4 hours | Source: Crypto_Ed_NL
Confluence of resistance levels on bitcoin chart
According to a recent report from Delphi Digital, Bitcoin is currently trading in an increasingly tight range at the current levels, largely due to the “strong move of $12,000 off the lows” on Feb. 4th. They also note that BTC is currently “getting towards resistance over multiple timeframes.”
As BTC price action heads towards a confluence of daily, weekly and monthly resistance, Delphi analysts suggest that “market participants of all groups will view this as a potential price cap” and that it “represents a reasonable place to expect a profit-taking/stop.” -Loss due to the confluence of resistance areas and the speed and magnitude of the move away from recent lows.”
BTC/USD 8 hour chart | Source: Delphi Digital
In terms of key areas to watch going forward, Delphi highlighted some significant support for BTC in the $40,000-41,000 range, with the next support below that at $38,500.
When it comes to the possibility of an upside move, Delphi Digital has listed the $46,000-$48,000 zone as a “heavy dollar” resistance area.
“This is a daily, weekly and monthly supply zone that is likely to represent a key resistance level. Above this level, we could see a push to $50,000.”
On a positive note, Delphi also highlighted an increase in institutional cash flow over the past few weeks “as the market started to turn.”
Monthly Cash Flow for Product Groups for Investments in Digital Assets | Source: Delphi Digital
Grayscale is the largest player in institutional investing, according to Delphi Digital, holding “about 65% of institutional assets under management,” but there are signs that sentiment is starting to change.
“Apart from BTC and ETH, BNB and BNB-based products continue to attract most AUM, but institutional sentiment is starting to favor alternative names like SOL.”
Bulls can take advantage of this classic trading pattern
Analyst and Twitter user IamCryptoWolf also offered a bullish Bitcoin price view. I did post The chart below outlines potential price action.
“Everyone predicting $46k, what if $50k -> $46k -> $60k, inverted head and shoulders pattern?”
BTC/USD 1-day chart | Source: IamCryptoWolf
The total crypto market cap is currently $1.996 trillion and Bitcoin’s dominance is 40.3%.
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