The volatility of the cryptocurrency market is a well-known phenomenon in the financial industry. There is no example of such price fluctuations in any form of market. Therefore, as it poses a great profitable opportunity to the investing sector, it also puts them at a risk for major losses in no time. However, with proper risk management, crypto traders have made huge gains during different market phases.
The cryptocurrency market experiences spells of bullish and bearish patterns, as the prices of various coins and tokens follow the similar trend. Digital tokens, mainly Bitcoin set the mood of the market, while helping investors to determine accurate market entry and exit points. However, popular and mainstream cryptocurrencies like Bitcoin also struggle to maintain a solid position in the market.
A similar phenomenon was observed this time around as Bitcoin faced a massive downgrade, and a strong bearish spell was induced on the world’s largest crypto token.
Bitcoin retraced to the levels of $40,000, triggering a 6-week low for the coin. Many experts speculated that this is the start for another bearish trend for Bitcoin. However, Bitcoin defied all odds and made a slight comeback to move past $43,000. It came as a shock move because everyone anticipated Bitcoin to go further low before staging a comeback. However, Bitcoin tested the support of $40K, and now eyes the mark of $45,000.
Bitcoin bulls target $45,000
Even though Bitcoin is staging a comeback, many experts still believe that the overall outlook of the coin is bearish. The trading community believes that if Bitcoin can pull through $46K, and reclaim the support of $45,000, then the coin will return to a bullish narrative. Currently, the leading cryptocurrency is valued at over $43,000.
As of now, Bitcoin is maintaining a stable position over the $40,000-$42,000 breakout range. Even though the coin seems to be oversold for now, its upward resistance in now around the $47,000 mark. The next resistance for the coin is at $50,000. However, the coin would have to maintain a strong position to reach and then overcome these resistance levels.
Currently, the short term volatility of Bitcoin is perceived in the bullish context. Therefore, the next few days of trading are crucial for the coin to make a mark in the market. It will also determine and clarify clearer trends for the coin, and the overall marker, as well.
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