Bitcoin price drops below $42K, but analysts still expect ‘one more impulse’ move
The wider cryptocurrency market continued to see choppy, sideways price action on Jan. 17 with Bitcoin (BTC) experiencing a midday dip to $41,650. Across the market, trading volumes remain subdued and U.S. financial markets were closed in observation of the Martin Luther King Jr. holiday.
Here’s what analysts are saying about Bitcoin's price action and the impact today's correction might have on BTC's market structure.
Analysis of the weekly Bitcoin price action was provided by crypto trader and pseudonymous Twitter user ‘Rekt Capital' who posted the following chart showing that BTC is trading near a well-established support and resistance zone.
Rekt Capital said,
A look at the long-term trend for Bitcoin was discussed by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following charts looking at the Bitcoin's 4-waves pattern and Realized Cap HODL Waves. According to the analyst, there is a possibility that the typical 4-year cycle for BTC may be lengthening.
van de Poppe said,
Related: Bitcoin stays in tight range as analyst eyes potential 'interesting week' in BTC
The sentiment of a lengthening Bitcoin price cycle were echoed in a tweet from crypto analyst and pseudonymous Twitter user ‘Techdev’, who posted the following chart providing analysis of the “impulses and corrections over the cycles' bull markets based on new address trends on-chain.”
Compared to the previous impulse waves outlined by Techdev, Bitcoin is still due for a green shaded price breakout in the current cycle before it resets and begins the next one.
Techdev said,
The overall cryptocurrency market cap now stands at $2.02 trillion and Bitcoin’s dominance rate is 39.6%.
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