After falling to $38,555, bitcoin price rallied above $40,000. In the meantime, Altcoins are becoming more and more active. And even though some altcoins have seen double-digit gains, they are still far from the period highs of Bitcoin ETF prices. So, what does the current crypto market outlook indicate?
Will bitcoin rise?
Last week, it was reported that bitcoin price could fall to $38,500 due to a breakout of the January 12 ascending and descending parallel channel. Subsequently, the decline of the leading crypto accelerated. Today, BTC price rebounded from $38,555 to over $40,000. It’s too early to party because the agenda for the next few days is very busy. Furthermore, macroeconomic optimism regarding rate cuts decreases as the USD index rises.
Bitcoin (BTC) price is currently in a volatile state and the $41,000 zone will be crucial in the coming hours. The advantage is that after the initial concentration of Grayscale Bitcoin Trust ETF (GBTC) sales, a balance should appear. Therefore, if sales continue to be weak, the current negative sentiment could reverse.
It should also be noted that as reserves of bitcoin spot ETF issuers build and GBTC sales weaken, it may be easier than expected to reverse recent oversold conditions . Therefore, it is still difficult to give a clear direction.
Should we fear a pronounced fall in crypto?
The fall in the price of bitcoin unfortunately leads to that of other cryptocurrencies.
After its price fell below the channel on January 12, a wave of decline in several cryptocurrencies followed. Moreover, this movement signaled the end of the uptrend to give way to lower levels.
But all is not lost. Because if bitcoin sellers continue to stay strong, the next support level will be $36,950. Otherwise, the horizontal support at $41,000 could be reclaimed. Which will certainly do good for the crypto universe, which mainly depends on the price of bitcoin.
Note that in a growing parallel channel, the cumulative value of the crypto reached a peak of $1.81 billion on January 11, 2024. Subsequently, the support zone of $1.61 billion failed and the price left the canal.
Knowing the volatility of the crypto market and even more that of bitcoin, it is very difficult to predict the course of future events. While it is true that Bitcoin (BTC) is showing signs of recovery, the glass-half-empty outlook is also possible. Regardless, the queen of crypto still hasn’t finished talking about her.
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