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.”
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.
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.”
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.