It has been a few days that Bitcoin has continued to trade in a rather narrow price range between a low at $56,000 and a high at $59,000 on Thursday.
Bitcoin’s price lateralization
This sideways trend is considered by experts as a classic pause by investors after the big bull run that had led Bitcoin to reach its all-time highs at over $67,000.
Some analysts fear that increased leverage in the Bitcoin futures market may precede a short-term price drop, while others expect the current trading range to result in a further rise.
According to the consensus of most analysts, a range is forming between support around $55,000 and resistance around $59,000.
These two price levels seem to be holding so far, and it is difficult to know which of the two levels will prove stronger.
Alex Kuptsikevich, analyst at FxPro, said in an interview with Coindesk:
“Here we see a classic market pattern: consolidation at an important level in September, a breakout and subsequent steady and methodical buying throughout October and the first half of November, and finally a period of correction and cooling off in November while maintaining significant levels”.
While remaining cautious on Bitcoin, the FxPro analyst seemed much more positive about Ethereum’s future price performance:
“Now, the correction and consolidation look complete, and the ether looks set to rewrite historical highs”.
Plan B’s Bitcoin price analysis
There are those who continue to be optimistic about the short-term prospects of Bitcoin, such as the famous and mysterious Plan B, who a few days ago reiterated his belief that by the end of the month the prices of the most famous cryptocurrency could reach $100,000.
In fact, his exact prediction made in April spoke of reaching $135,000, but now the target seems to have been lowered slightly, after his November prediction of $98,000 turned out to be wrong.
The whale variable
But what could also change the course of events is the movement of the so-called whales, i.e. large holders of Bitcoin who can influence the market.
On 15 November there was a transfer of around $1.2 billion in value from two anonymous wallets.
Then, in the first two days of December, there would have been some massive movements of some of these large Bitcoin holders as explained by the website Btcparser.com, which records large Bitcoin movements, refining in a note that
“significant amounts of Bitcoin have been withdrawn from cold wallets and moved onto active exchanges”.
Usually these large moves by the crypto market’s “whales” anticipate big movements in one direction or another.
Sam Kopelman, the UK manager of the Luno exchange, gave his clear opinion on Thursday on what may happen to the crypto market in general.
“Having had a strong start to November, bitcoin was unable to hold the $59,000 support level, consolidating between $53,000 and $59,000 this week. Bitcoin is down only 1 per cent in the last week, and Ethereum is up by 6 per cent over the past seven days. Despite its recent dip, the crypto industry is still thriving – at least 64 crypto companies have now reached unicorn status, exceeding the $1 billion valuation category”.
As if to say that the prospects for a good crypto market rebound remain entirely intact.
The post What will happen to the price of Bitcoin now? appeared first on The Cryptonomist.
