Last week was a red week for the cryptocurrency community. In the past 7 days, most coins lost in their market capitalization. Many investors liquidated their positions because of this previous price dip. Moreover, Bitcoin’s price-action seemed to have lost its momentum. In this article, we’re going to plot a Bitcoin price prediction, and analyze important price areas.
Bitcoin Price Prediction – Why Bitcoin’s price is Important
We often notice that when analyzing the crypto market, we always start by looking at Bitcoin’s price. In fact, this is a very natural analysis process, as Bitcoin’s current market dominance is sitting just above 61%. When plotting Bitcoin’s price-action chart, we notice a clear correlation in the price-action vis-a-vis the whole cryptocurrency market cap. Not only is Bitcoin the very first cryptocurrency which attracted many investors, but its rising prices often lift the entire cryptocurrency market.
Bitcoin Price reached an Important area
In a previous article, we mentioned how a significant break in the USD 45,000 price downwards, could show a further correction below USD 40,000. During this past night, Bitcoin prices did a fakeout and reached USD 43,300 for a period of 4 hours, and later corrected back upwards.
Now let’s talk strategy and positioning. If Bitcoin’s price fails to stay above the dotted area in figure 2 (ie. above the USD 43,000 price), a downtrend would definitely be in place. It would be better to sell BTC if the purchase price was anywhere above 45K. On the other hand, a consolidation around 50K is another possible route, where prices take breathers and prepare for reaching further potential price areas, more notably the 60K milestone.
The whole Crypto Market
In the past 7 days, most cryptocurrencies lost in their respective market caps, with the exception of very few coins such as Cardano. On this monday morning though, most coins seem to slightly recover, giving hope for a better week ahead:
1- Bitcoin (BTC) : – 18.5 %
2- Ether (ETH) : – 23.97 %
3- Cardano (ADA) : + 19.94 %
4- Tether (USDT) : 0 % (surpassing Binance Coin)
5- Binance Coin (BNB): – 21.29 %
6- Polkadot (DOT) : – 11.61 %
7- Ripple (XRP) : – 29.77 %
8- Litecoin (LTC): – 26.02 %
9- Chainlink (LINK) : – 23.10 %
10- Stellar (XLM) : – 20.09 %