In the downward move, USD 38000 might be the next stop, although USD 32000 is the definite floor with equal faith.
Bitcoin(BTC) experienced the first significant test for many weeks of USD 40000 overnight. The question arises about the price zones the trades are looking out for next.
Whether short-term or long-term -there is no definite answer, but one thing is sure this range remains intact.
Bitcoin Tumbles After The Moment Of Truth
According to data submitted by TradingView and Cointelegraph Markets Pro, BTC/USD experienced a modest sell-off on the back of the macro pressures on 17th February that continued till next Friday with the local lows ranging in USD 40330 as appeared on Bitstamp.
The bounce made the pair reach above USD 41000, although the nerves remain over more challenges to bull resolve strength.
The famous bounce zone on the break lies at USD 38000 currently, and when the lows of the 16th of February set in, the widespread Twitter handle of Credible Crypto restated the requirement to hold the number moving forward. They called it the "moment of truth" and, with their forecast chart, summarized that by considering the lows, if the bottom remains at USD 32000, the downside must be limited to the "GREEN region" for forming a higher low.
However, some seemed less enthusiastic with this prospect, even about the USD 40000 set, for example, Crypto Ed, a famous trader. According to the statement, while hanging from the USD 40000 margin, he needed a miracle after the surprising dropdown. Meanwhile, the derivatives market structure reinforced the macro bottom at about USD 32000. According to a reputed analyst named Dylan LeClair, the wagers entered during January when it hit, creating more than merely a line on the sand for price stability.
As per one of his series of tweets regarding the environment, this speculative air in the $BTC derivative market got unwound essentially and completely while bidders of the spot market took hold at USD 33000 during early January.
While some became distinctly queazy about the longer timeframes, Dylan argued that nothing changed while zooming out as Bitcoin was on track, indicated by the 4-year halving cycles. He also advised not to lose sight of the bigger picture. He concluded by stating that besides the macro environment, the process of Bitcoin monetization kept on going, and amid all the uncertainties, Bitcoin was ranging approximately about an order of a magnitude higher than that during its previous cycle.
True to the form, overnight flows had filled the CME Bitcoin future gap remnant from exit out of USD 30000-40000 corridor during the start of February.
Fidelity Analyst -"Mostly Noise" Price Debate
Instead of the price analysis, the Director of the global macro at Fidelity asset manager, Jurrien Timmer, called for refocusing the attention on the multi-year network growth by observing the ups and downs of last year. He tweeted that Bitcoin had been in rough range for almost a year while bouncing between USD 30000 and USD 65000. He added that only network matters for Bitcoin and that the debate regarding high and low continues among many people, but most of it is only noise.
According to Timmer, the price targets of Bitcoin remain in a similar regression curve to the metamorphosis of Apple from the 1990s to date.
The result might be a significantly slower journey to USD 1 million and beyond than people hope, but the solidity of the network fundamentals and adoption come first.
