Bitcoin Price Prediction – Why is BTC stuck around USD 35,000?

So far, Bitcoin managed to increase in 2021 by 17% in almost 3 weeks. A lot of speculations are already being discussed on social media and the mainstream media, about a potential crash in prices that will erase all gains made, from a price of USD 10,000 all the way to hit USD 42,000. But what’s really making prices consolidate at current levels? Are we really about to witness a crash soon?

Bitcoin Price Prediction – The current Consolidation is GOOD

Back when Bitcoin managed to reach USD 42,000 which represents currently its all-time high price, we wrote an article predicting a coming consolidation phase. This event comes exactly after reaching the ATH price. In 2017, when prices reached their ATH, they crashed soon after with no consolidation. This shows that hype was the only driver of that past uptrend.

Contrary to events from 2017, today we witnessed yet another Bullrun from a low price of USD 3,900 all the way to USD 42,000. This time, we were noticing “breathers” along the way as signs of good technical formations that present technical traders and investors opportunities to buy in, with proper stop-loss strategies. In figure 1, we show the different consolidation areas we previously mentioned in an updated graph.

BTC/USD 4-hour chart showing consolidation areas after each uptrend
Fig.1 BTC/USD 4-hour chart showing consolidation areas after each uptrend –

When good technical formations happen, more players enter the market, thus more buyers come in driving prices upwards. We would be more concerned if prices did NOT consolidate and just went upwards, creating another bubble-like effect from 2017.

What comes after the Consolidation phase?

Well, the answer is pretty obvious, and we are presented yet again with 2 potential scenarios:

  • Prices will strengthen and go back to break the ATH into new uncharted territories
  • Prices will fail to pick up their momentum, and the lower consolidation trend line of USD 31,500 will be breached
Fig.2 BTC/USD 4-hour chart showing2 potential scenarios –

Readers might think that the above is so obvious, but in fact, they forget about BOTH potential scenarios and only focus on either Buying or Selling. What about setting stop-losses? Or specific entry levels?

If we tackle figure 2 as professional traders would, we would have many strategies:

  1. Stop-loss area around USD 30,000
  2. Buy-limit order around USD 32,000
  3. Take-profit around USD 39,000
  4. Buy-stop around USD 42,000

The opportunities are endless, the above are just small examples of what can be traded in the current Bitcoin consolidation. Of course, you might want to WAIT for further market confirmation, but we don’t want to wait too long, like when you did when Bitcoin was below USD 10,000 ( :

The Cryptocurrency market as a Whole

In the past 24 hours, the cryptocurrency market was mostly down. Some attribute this event to ETH reaching its all-time high and adjusting back to normal levels. Bitcoin dominance also is weaker at 65%, showing that most investors are buying altcoins.

1- Bitcoin (BTC) : – 6.64 %

2- Ether (ETH) : – 7.16 %

3- Tether (USDT) : 0 %

4- Polkadot (DOT) : – 11.57 % (surpassing XRP)

5- Ripple (XRP) : – 4.26 %

6- Cardano (ADA) : – 8.67 % 

7- Litecoin (LTC): – 11.04 %

8- Bitcoin Cash (BCH) : – 8.03 %

9- Chainlink (LINK) : – 10.85 %

10- Stellar (XLM): – 8.67 % 

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Rudy Fares

Bitcoin Price
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