Expert Analysis: Bitcoin ‘Bottom Is Not In’, Potential $30K Retest On The Horizon
February 02 2024 - 11:00PM
NEWSBTC
Bitcoin (BTC), the largest cryptocurrency by market capitalization,
closed January above the $40,000 threshold, signaling positive
price action. However, market expert Justin Bennett suggests that
Bitcoin’s bottom has yet to be reached. Bennett’s analysis
highlights the possibility of further price declines, with Tether’s
stablecoin USDT dominance (USDT.D) chart indicating potential
downward movements. Tether Dominance Signals Concerns For
BTC’s Price Bitcoin’s recent price recovery and ability to surpass
the $40,000 level have provided optimism among investors.
Nevertheless, Bennett believes further price declines could follow
a retest of the mid $44,000 range. Bennett highlights the
inverse relationship between Tether dominance and Bitcoin.
According to his analysis, the levels on the Tether dominance chart
since October have been reliable indicators for Bitcoin’s price
movements. According to Bennett’s analysis, as depicted in
the chart above, Tether’s dominance may experience a potential
increase from its current level of 6%. This increase could bring it
closer to the 8% mark. In such a scenario, Bitcoin’s
performance would likely move in the opposite direction, indicating
potential price declines soon. Related Reading: Timeline For All
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January 25, Bennett suggested that Bitcoin could drop another 20%
from its current levels, which would place it around $30,000. If
this scenario plays out, it would be crucial for Bitcoin bulls to
defend the $30,000 level to maintain the current bullish structure.
A drop below $29,000 would give bears a stronger position, with
only three major support lines remaining at $28,400, $25,900, and
$24,000 before a potential retest of the $20,000 mark. The
performance of these support levels and Bitcoin’s ability to
withstand increased selling pressure will be key factors to
monitor. The future market sentiment will also play a significant
role in determining Bitcoin’s price trajectory. Bitcoin Witnesses
Stellar Accumulation Trend Despite the possibility of further price
drops, renowned crypto analyst Ali Martinez has shed light on a
notable trend in BTC’s recent accumulation streak by investors.
According to Ali Martinez’s analysis, Bitcoin is experiencing a
significant accumulation streak, rivaling some of the most notable
periods observed over the past few years. The Accumulation
Trend Score, a metric that gauges the buying activity of larger
entities, has remained consistently high, hovering near 1 for the
past four months. This suggests that influential market
participants are actively accumulating Bitcoin, signaling their
confidence in the long-term potential of the cryptocurrency.
Martinez’s observations further indicate that Bitcoin’s price range
around $42,560 has emerged as a highly significant interest
zone. Within this range, an impressive total of 912,626 BTC
has been transacted. This is expected to be a significant support
level, potentially preventing further downside movements and
fostering increased buying interest. Related Reading: XRP Records
Highest Single Day Whale Accumulation Since Ripple’s Partial
Victory Over SEC These trends collectively contribute to a positive
market outlook, suggesting that despite potential price drops,
Bitcoin remains an attractive asset for long-term investment.
Featured image from Shutterstock, chart from TradingView.com
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