Bitcoin Traders Target $30K–34K Price Zone Due to Latent BTC Chart Patterns
The total crypto market capitalization decreased on January 23, with the global market value falling from $1.6 trillion to $1.5 trillion, representing a 5.5% day-to-day decrease.
Transaction volumes have increased by 55%, this is mostly due to sales in the market.
Bitcoin (BTC) price fell below $40,000 to trade at $38,521 on January 23rd.
Most altcoins are following BTC's price action, with Ether (ETH) falling below the $2,200 mark and Solana (SOL) briefly missing the $80 support level. Binance Coin (BNB) lost the $300 level, which was a key support level for the Layer 1 token.
Related: Bitcoin Rides New $600M GBTC Drop, BTC Price Hits 2-Month Low
Analysts are back on BTC
Bitcoin's recent price action has many investors questioning whether the rally to $49,000 is the end of the bull market.
According to veteran trader Bob Lucas, Bitcoin's weekly cycle chart suggests that the price is bullish.
The damage is now done, weekly cycle added.
IMO best case for discounts if price drops in mid-February. March is the best time for low cycle.
It's good to see some fears develop over time. https://t.co/a9qFTwULHi
— Bob Loukas (@BobLoukas) January 23, 2024
Meanwhile, another prominent trader, Peter Brandt, saw BTC trading below the $40,000 mark, confirming that the price had “completed a right-angled expanding triangle above $42,400 BTC”, confirming a bearish breakout.
According to a chart Brandt shared in a Jan. 22 post, the bearish price is around $34,700.
General rule Weekly chart is more reliable than daily chart Daily chart is more reliable than internal chart Chart patterns fail more often than they work Bitcoin completes right angle expansion triangle above $42,400BTC pic.twitter.com/oLI3rFZOHN
— Peter Brandt (@PeterLBrandt) January 22, 2024
Bitfinex's short-term target is very high, in the $38,000 – $36,000 zone in the short-term and before halving in the long-term, the $32,000 mark.
Despite the ongoing correction, other analysts were optimistic about BTC's upside. Jurien Timmer, director of global macro at Fidelity Investments, isn't worried about the Bitcoin crash. He posted the following chart on X,
“In my view, the price of Bitcoin is driven by the size and growth of the network, which is driven by its scarcity characteristics (stock-to-flow) and real rates (federal policy). As the chart shows, the Bitcoin network is growing in line with a normal energy return curve. That means the Bitcoin network S -curve nature remains on the path.
On this positive outlook, independent analyst Ali says, after seeing a repeat of the historical sentiment cycle that saw BTC experience a brief stress phase during a price correction, “this could be a temporary setback before the start continues.” “
#Bitcoin Sentiment Cycle: After historically moving from neutrality to hope, optimism, and finally faith, #BTC has experienced a brief depression phase often characterized by price corrections.
This pattern seems to be repeating itself, as we are now seeing… pic.twitter.com/dBwX57D6cP
— Ali (@ali_charts) January 23, 2024
According to Ali, the continuous correction may be due to the stress in the market, which may begin to recover in a short period of time.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
