Amid fluctuations in Bitcoin's price at around $118,348, the cryptocurrency market is at a pivotal juncture. Analysts discuss changing price scenarios and their effects on investment decisions.
Support and Resistance Levels in Technical Indicators
Lark Davis, a noted analyst, suggests that Bitcoin's recent slowdown could establish the $108,000-$112,000 range as a potential support level. Historically, this level was a peak early in the year, and according to technical analysis, former resistance can turn into support. Davis highlights that this area aligns with crucial Fibonacci retracement levels and the 20-week exponential moving average, adding credibility to this support zone.
Possibility of Lateral Movements and Alternatives
Michaël van de Poppe, another expert, comments on Bitcoin's failed recent attempts to reach new peaks and an increase in selling pressure. He posits that the market may linger in lateral movement, where the price could oscillate within a certain range, potentially reducing leveraged positions and cultivating a new market equilibrium. Van de Poppe also notes that Bitcoin's stagnation may rekindle interest in alternative crypto assets.
Expected Activity in Altcoins
If the market continues sideways, major altcoins might experience increased activity. Historically, during Bitcoin’s static periods, alternatives like Ethereum have provided higher returns to investors. This suggests a potential shift in market focus from Bitcoin to other major assets. Although Davis and van de Poppe predict different market outcomes, both point towards a correction or consolidation phase rather than extensive market retreats.
Overall, experts converge on the idea that Bitcoin might dip towards the $108,000-$112,000 range before ascending due to buyer interest or maintain a sideways movement to consolidate market power. Investors are advised to monitor Bitcoin's short-term movements and potential altcoin volatility.
