If Bitcoin doesn’t break records right away, that wouldn’t be the worst thing, post trader

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After rising past $ 40,000 and a correction of nearly $ 30,000, Bitcoin (BTC) rebounded again. However, according to Brian Krogsgard, a trader and podcaster by the name LedgerStatus on Twitter, the stall before climbing to highs close to $ 42,000 could be good for the asset.

“Bitcoin’s correction was healthy in a strong bullish environment, which signifies a return to the 20-day moving average,” Krogsgard told TBEN on Thursday. “With a strong rebound now, it’s time to see if he will immediately continue to climb or if he will spend more time in prolonged consolidation, which I think would be healthy.”

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Bitcoin barely exceeded $ 40,000 on Thursday morning before edging back slightly, falling back to the $ 39,000 range, according to data from TradingView.com at the time of publication.

Breaking the $ 36,000 mark was a big move for the asset, according to comments from CryptoWendyO, a trader and analyst on Twitter. “Unless we get $ 36,000 back, I’m not ruling out a further drop,” she told TBEN on January 12, before Bitcoin’s recovery broke the level. Assets recently passed $ 36,000 with conviction. Bitcoin’s 4-hour price chart is now showing a lower low.

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Source: TradingView.com

CryptoWendyO’s updated commentary shows price optimization at the moment. She told TBEN on Thursday:

“Bitcoin has seen an incredible rebound at my ~ $ 34,200 support box after this huge ~ 25% drop. I myself am in disbelief, but the fundamentals of 2020/2021 are different from Bitcoin’s earlier history, currently I believe we will continue to increase and I am planning to return $ 42,000 and continue on a similar momentum after we experienced a decline on 1/7/2021 from ~ $ 34,200 to ~ $ 28,000 for test ~ $ 48,000. “

When it comes to recent price action, Krogsgard sees a correlation with one of the mainstream Bitcoin products. “It appears that the closing and reopening of the GBTC for depots had a real impact on the demand for coins, as their market reopening marked the bottom,” postulated Krogsgard. “I believe we will continue to see institutional demand on any decline.”

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Managed by Grayscale, GBTC is essentially the stock form of Bitcoin, with each stock backed by a fraction of a Bitcoin. The company suspended BTC trust investments in December and reopened them this month.