Bitcoin continues to struggle to escape the $44K-$44K price bracket. This level is not a problem, but it has proven difficult for Bitcoin to break through and maintain momentum over the $45,000 price mark. The game is still dominated by consolidation. How soon is this going to end?
Bitcoin Is Still Consolidating
Bitcoin’s recent gains have been steady. Bitcoin had previously broken $40,000 twice in the first 2 months of 2022. This is now the 4th time it has done so. It seems that the outcome of the three previous attempts has been the same. It has been difficult for the digital asset to hold its $40K position, and eventually fell to $38,000.
Crypto Market Crumbles To Extreme Fear, Is It Time To Buy?| Crypto Market Crumbles To Extreme Fear, Is It Time To Buy?
The $36,000-38,000 bitcoin level has been strong for the bulls. At this point, bulls seem to be the winners. However, bitcoin has seen continued consolidation.
BTC Trading Above $41,000 Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Market consolidation has taken so long that the market had been expecting to see a break and move towards $45,000 but it would not. The tug-of war between bulls and bears saw the consolidation of the digital asset remain.
Is Bitcoin a Currency?
Like any consolidation range bitcoin may break free in any direction that is favorable to it depending on its momentum. Bitcoin is currently trading at $42,000, but that is still a weak spot, so bears could drag it down anytime. The digital asset must move beyond $44,000 to show any sign of a recovery trend.
Similar Reading: Yellen Makes Positive Comments About Biden’s “Crypto EO” Push Bitcoin Above $41,000| Yellen’s Positive Remarks About Biden’s Crypto EO Push Bitcoin Past $41,000
To confirm the end of this consolidation zone, it must break the downside of the $45,000 resistance level. If the price points are broken above, it would indicate that the bulls once again control the market. But, as always, it is uncertain if a breakout of the current consolidation range will be up.
Sources: Arcane Research| Source: Arcane Research
BTC maintains strong support in the $36,000-$38,000 range, as mentioned above. However, a fall below this lower limit could have serious consequences for cryptocurrency. The next level of support is at $34K below $36K. If bitcoin could go above this level, it would end current consolidation. That would place the $28,000 critical support level, which would mean that bitcoin is in dire financial straits.
Featured Image from MARCA chart by TradingView.com