Home Price Analysis Bitcoin Price Analysis: BTC Consolidates Below $4,000

Bitcoin Price Analysis: BTC Consolidates Below $4,000

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Of course, blockchain as a Triple Entry accounting system is advantageous in several ways. There are no third parties and coin owners are their bosses. This “monetary liberation” is a rallying call, an adage that every novice should know as this distinguishes holders from no-coiners.

But things are fast changing. Responsibility is tough for some and made worse by the simple fact that Bitcoin and all other cryptocurrencies exist in the digital ether, the demand for custody is slowly but surely rising.

And as they do etch their mark, bankers and centralized entities that run these institutions are reaping big profits while simultaneously diluting the freedom associated with crypto. Remember, when you don’t own private keys, you can’t sign off transactions. It defeats the very reason of decentralization and because of this Trace Mayer is on the front educating the curious kick-starting what he calls a Proof of Keys campaign. He is simple demanding ownership in a bid to spur across the board adoption as it is “important to declare and re-declare our monetary sovereignty on a regular basis.”

The declaration begins today and HitBTC might not be ready because two days ago, some users complained saying they still weren’t able to withdraw their coins despite being KYC verified.

Bitcoin (BTC) Price Analysis

Overly, Bitcoin is still a preffered asset and with US SEC endorsement there is no risk of buying a security and getting entangled with compliance baggage. At spot prices, BTC is up 1.6 percent in the last day and up 1.4 percent from last week’s close.

This is what investors want to see and as long as prices are trending above Dec 28 lows of $3,700 and most importantly from 2018 lows of $3,220, buyers are in prime position to rally past $4,500 and even $6,000. Already hints are beginning to print out but before this bullish largess take hold, we shall retain a conservative approach as laid out in previous BTC/USD trade plans expecting prices to first rally above the latest congestion with caps at $4,500.

It’s easy to see why this level is critical for BTC trading. First, it is the 38.2 percent Fibonacci retracement level marking the high-low of Nov-early Dec meltdown. Secondly, $4,500 is psychological and in numerous occasions there have been liquidations at this level—Nov 29 and Dec 24. Therefore, if there is a break above this mark—$4,500– at the back of above average volumes, then we expect BTC prices to test $6,000—and nullify bears of November.

Ideally, this shall be our Bitcoin trade plan:

  • Buy: $4,500
  • Stop: $4,000
  • First Target: $5,800, $6,000

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

Carlos Teodoro
Cryptocurrency enthusiast and everything they represent, Carlos is responsible for writing articles, creating images and belongs to the Crypto Economy team since 2017. He is also in charge of the commercial department, social networks and the revision of translations. Carlos continues to train every day to become an expert in the blockchain.
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