Profit taking influences current market movements
Bitcoin’s price range has become significantly more subtle in recent years as it has grown in popularity as a cryptocurrency. It is currently valued at $42,398.83 as of Sunday.
On Saturday, the BTC/USD exchange rate rose 7.07%. Bitcoin ended the day at $42 414, up 3.54% from Wednesday’s low.
Analysts say investors are in profit-taking mode this week, rapidly eroding daily gains and capping the market around the 45K level.
Bitcoin fell to an intraday low of $43,917.4 on Saturday morning before rallying. Late in the day, it set a fresh high of $48,598, surpassing the previous record of $43,284 earlier in the day.
Despite concerns about the global economy and rising inflation, investors are attracted to Bitcoin (BTC) price movements.
Fast Bitcoin Price Analysis
Bitcoin would have to avoid a breach below the $45,841 pivot level to trigger the first major resistance level at $48,765.
The crypto would need broad market support to break out of this new swing high of $48,945. Unless there is an ongoing crypto rally, any gains will likely be limited by the first major $50,000 resistance level.
If the pivot level of $46,841 is crossed, the first major support level of $45,084 comes into play.
However, barring a prolonged cryptocurrency sell-off, Bitcoin should keep it from falling below $45,000.
BTC/USD price at $42258 on the daily chart | Source: TradingView.com
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The world’s most popular cryptocurrency would need broad market support to overcome the recent swing of $48,945.
The first critical barrier level and resistance near $50,000 are likely to prevent further gains until crypto assets experience sustained gains.
In the event of a prolonged crypto rally, Bitcoin may test the second major resistance level at $51,522. Crossing the pivot point of $46,841 will test the first significant support level of $45,084.
On the other hand, unless there is a significant crypto sell-off, Bitcoin should prevent it from falling below $45,000. The $42,161 mark is the second significant support level.
While Bitcoin appears to be recovering, it is still a long way from its November record high of $68,000. Despite the recent drop in price, Bitcoin remains more than twice as high as it was a few years ago.
Meanwhile, despite the volatility and recent price drops, many analysts believe it will eventually exceed $100,000.
However, there are differing views on when and how this event would occur. When it comes to bitcoin, experts advise novice investors to exercise caution when deciding whether to invest a percentage of their assets in cryptocurrency.
Bitcoin’s price has risen at a similar rate to other cryptocurrencies in recent years. How much Bitcoin’s value will increase over time is a legitimate concern for investors.
Related literature | Bitcoin Stabilizes Above $45k, US Inflation Comes in at 7.5% YY
Featured image from TechCrunch, chart from TradingView.com