The Bitcoin Price Range to Watch
If you’re eagerly waiting for a rally in March ahead of the Bitcoin halving event, JPMorgan believes that the rally is already priced in. However, there are still key price ranges to watch for potential movement:
- The first supply zone, acting as critical support, ranges from $50,000 to $51,570. Approximately 1.3 million addresses hold a total of 670,220 BTC in this range.
- The second zone, acting as a formidable resistance barrier, spans from $51,640 to $53,200. In this range, 752,600 addresses collectively hold 351,600 BTC.
Data from Coinglass suggests that if the Bitcoin price jumps to $52,250, approximately $76.38 million will be liquidated across the board. Analysts suggest that a decisive break above the resistance zone could lead to a bullish upswing toward $57,130. On the other hand, failure to hold above the support zone may signal a corrective movement towards $47,700.
Possible Bitcoin Price Drop to $40,000
Some market analysts are urging caution at this stage and believe that Bitcoin’s price upside looks limited. Crypto analyst Michael van de Poppe predicts that the current rally could peak within the $54,000 to $58,000 range. After reaching this peak, he expects a significant correction to the $40,000 to $42,000 range. This correction is likely to occur after the halving event.
Additionally, there are expectations for a major correction on Wall Street this year. Bitcoin maximalist Max Keiser believes that a 1987-like correction is likely on Wall Street. Historically, whenever there has been a major correction on Wall Street, Bitcoin’s price and the crypto market have also experienced crashes. However, Keiser argues that Bitcoin will prove to be a risk-off asset this time.
This is a common misperception; #Bitcoin is a risk-off asset and the greatest safe haven asset available.
— Max Keiser (@maxkeiser) February 25, 2024
Key Takeaways
The current Bitcoin price consolidation around $51,000 has left many investors waiting for a significant movement. Here are the key takeaways from the analysis:
- The Bitcoin price is trading between two significant supply zones: a support zone from $50,000 to $51,570 and a resistance zone from $51,640 to $53,200.
- A break above the resistance zone could lead to a bullish upswing toward $57,130, while failure to hold above the support zone may signal a corrective movement towards $47,700.
- Analysts anticipate a potential peak in the current rally within the $54,000 to $58,000 range, followed by a significant correction to the $40,000 to $42,000 range.
- There are expectations for a major correction on Wall Street this year, and historically, Bitcoin’s price and the crypto market have crashed during such events. However, some believe that Bitcoin will prove to be a risk-off asset this time.
Hot Take: What Should You Do?
Considering the potential scenarios and the current Bitcoin price, what should you do as a crypto enthusiast? Here are some suggestions:
- Monitor the key price levels: Keep an eye on the support zone at $50,000 to $51,570 and the resistance zone at $51,640 to $53,200. These levels can provide insights into short-term price movements.
- Stay cautious: With the possibility of a significant correction after reaching a peak in the rally, it’s important to exercise caution and manage your risk accordingly.
- Keep an eye on Wall Street: Pay attention to any major corrections or events on Wall Street as they can impact Bitcoin’s price and the overall crypto market.
- Consider Bitcoin as a risk-off asset: While historically Bitcoin has crashed alongside Wall Street during major corrections, there is a belief that it may act as a risk-off asset this time. Stay informed about any developments in this regard.
By staying informed and monitoring key price levels and market trends, you can make more informed decisions as a crypto enthusiast. Remember to assess your risk tolerance and adjust your strategies accordingly. Happy investing!
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