Bitcoin And Ether Price Going Down And Then Up; Altcoin Price Is Mixed

Bitcoin price was unable to initiate a rally today. It started the day with a short-term bearish spiral that brought its price to $41,000. But then it changed course. At the close of trading on the US stock market, it was on its way to where it started the day, above $42,000. At press time, the largest cryptocurrency by market capitalization is trading above $42,422, up slightly on the day.

bitcoin-price-and-ether-go-down-and then-up-altcoin-price-are-mix

BTC/USD 4-hour chart | Source: TradingView

Bitcoin Price Looks Oversold During Asian Day, But Gains Still Limited

Bitcoin has been stuck in a range of $40,500 to around $44,500, waiting for the bulls or bears to push it above or below the support or resistance level.

Throughout January, BTC consolidated between $40,500 and $44,200. As this range tightens, a move up or down becomes more and more likely. This consolidation pushed BTC into a lull and created a battle between the bulls and the bears over the direction of the market.

Bitcoin fell briefly past the $40,000 range, as outlined above, and it is unclear if investors and traders can push back if it breaks through the support again.

Current general sentiment suggests that there is more room for decline as investors move away from riskier assets, such as tech stocks and cryptocurrencies, and back into cash. Uncertainty could return to upcoming rate hikes from the Federal Reserve, historically associated with a bear market. If enough leveraged long positions are stacked near $40,500 and bitcoin breaks below that, it could trigger a cascade of stop-losses, triggering a price and bar event — a deep account than.

On the other hand, if the bulls hold the line above $40,500, an opposite swing is possible, forcing short positions to buy.

“In the midst of Bitcoin’s 10-week halving, its share of supply across exchanges has fallen to its lowest level since November 2018. Traders moving BTC to cold wallets continue and this milestone continues. suggests less risk of a continuation of the larger sell-off,” Santiment stated.

bitcoin-price-and-ether-go-down-and then-up-altcoin-price-are-mix

The source: Santiment

Investors should expect bitcoin to remain in a tight range and continue to test the $40,000 support and $44,500 resistance until broader market pressure occurs. In other words, Ether and other altcoins will trade at a more volatile percentage consistent with bitcoin’s movement. Thursday’s first jobless claims report could be the catalyst to push bitcoin below past support or resistance.

The overall crypto market cap is $2,007 trillion and Bitcoin dominance is 40%.

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