Since 2021 began, Bitcoin’s price kept fluctuating, from peaking around the $40,000 range to dropping close to $29,000 within January alone. The digital asset now sees a certain stability level that the asset failed to reach since late last year. After Bitcoin reached its ATH, it faced some significant corrections, which saw it declining and rising within a short period.
The new stability could be due to the reduced sell pressure, which Bitcoin had previously battled with, since two weeks ago. The selling pressure led to a continuous price collection, which currently leaves the crypto far lower than its recorded peak. The bearish trend the asset once saw is gradually reducing, with crypto enthusiasts hoping that the new buying pressure could cause a rally that would return BTC to the $40,000 so that asset holders would record notable gains.
Bitcoin’s future is still unknown
With the asset’s current structure, no one knows if it would skyrocket to a new high or continue declining as it did two weeks ago. The asset neither gained nor dropped, which led to some bullish indications, but unfortunately, the asset’s consolidation is more likely.
After several weeks of rapid price changes, traders can now relax with the crypto’s volatility rate reducing every day. The current price movement makes it hard for even experts to predict what would become of the giant crypto.
Bitcoin’s current aSOPR is around 1.28, which followed the unexpected price increase and a long correction period afterward. With this technical indication, Bitcoin might not see a price increase for a while. Since it peaked, Bitcoin has seen a 30% decline, which took the price to the $20,000 range.
The digital asset’s current movement shows that it would no longer face price correction for some time. Statistics show that for a possible aSOPR drop, traders would have to trade at a loss, which might not happen following the current market structure.
Bitcoin sees a consolidation period ahead
As experts predicted, it’s now likely that the asset would go through a consolidation period. This could help the crypto record some gains within the $33,000 range. But currently, looking at the resistance level might be unlikely, with a rejection returning the asset to the $30,000 range. One more indication supporting the consolidation period is the weak support level. The support level seems too weak to record new gains, while a decline is possible if a price rejection occurs.
Fortunately, if the asset manages to bypass the resistance level, it could go beyond its ATH. Nevertheless, if rejection happens, there could be an immediate sell-off to secure the profits in Bitcoin, leading to an unexpected price crash that might send it to around the $20,000 range, where it would face resistance to retake its current level.
Experts recently beamed that now is an excellent period to buy Bitcoin since it currently faces a price drop. They opine that once the crypto skyrockets, investors would not be able to buy it at the $30,000 range and could surge into the $40,000 zone.