Commodity News

Bitcoin finally breached the $34,000 price resistance after nearly 4 days of consolidation between $30,000 and $33,500. The top cryptocurrency was trading at $33,880 at 5:42 PM GMT on Monday at press time.

After entering a new ATH of $40,000 in the first week of 2021, the cryptocurrency’s bull run took a pause and slowed down significantly for the past two weeks of the year.

Bitcoin whales seemed to have accumulated more of the cryptocurrency against the dip, suggesting that the market is still bullish on the cryptocurrency despite the recent correction. After breaching the $34,000 price resistance BTC would be eyeing to regain the $36,000 levels before testing the ATH again as on-chain metrics are still in its favor.

Last Thursday, BTC faced a massive influx of selling pressure that caused it to slide below $29,000. This decline erased weeks of gains and marked capitulation.

One popular trader explained in a recent tweet that Bitcoin’s price structure looks incredibly strong and may allow for further upside in the mid-term.

BTC: Structurally, this still looks great to me. It put in what I believe to the low last week at $29k and still believe the market (Eth mainly) will drag BTC up to range highs this week.

$BTC

Structurally, this still looks great to me. It put in what I believe to the low last week at $29k and still believe the market (Eth mainly) will drag BTC up to range highs this week.

It actually looks very similar to how Alpha did back in December (see post below). pic.twitter.com/2ljW2NqLx1

— resolute (@resolutemex) January 25, 2021

Hence, going forward, BTC will remain range-bound with less volatility and fewer returns. Ideally, this is where long-term holders stop looking at the chart and accumulate more BTC in anticipation of a surge. Traders, on the other hand, can look to scalp the ranges and accumulate more BTC. The third option is to accumulate altcoins that have already started to see good returns. To sum up, BTC ranging to $40,000 is unlikely but not impossible, however, BTC hitting $50,000 anytime soon, or at least in the 1st quarter seems probable.

If the sub-$30,000 dip does mark a long-term bottom, then Bitcoin could be starting the next phase of its growth cycle that leads to fresh all-time highs.

If you have any questions and comments on Bitcoin today, use the form below to reply.