Home News Bitcoin bounces off $30K amid ‘possibility’ of exit to mid-$40K range

Bitcoin bounces off $30K amid ‘possibility’ of exit to mid-$40K range

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Recently, the Bitcoin rate has been subject to high volatility, which could be due to various factors. Many large investors began to withdraw BTC to cryptocurrency exchanges in order to further sell digital assets. All this led to a rapid decline in the value and indicators of the total capitalization of the leading digital asset in the cryptocurrency market. However, analysts are confident that soon Bitcoin will be able to return to its previous positions. And its value may rise to 40 thousand dollars.

This week, the cost of Bitcoin for the first time since January of this year dropped to $ 28.8 thousand. After that, the quotes returned to the range of $ 32-35 thousand. As of June 27, the cost of the main cryptocurrency is $ 33 thousand.

The decline in the value of Bitcoin this week was due to the news agenda banning Chinese financial institutions from conducting operations related to cryptocurrencies.

50/50

After Bitcoin dropped to $ 28.8 thousand, the asset price quickly returned to the $ 32-40 thousand range. This indicates that the zone around $ 30-32 thousand is extremely attractive for buyers, and sellers are already running out. If there is no repeated attempt to break down $ 30 thousand, then the price will return to $ 40 thousand and may continue further recovery, analysts predict.

The probability of recovery to $ 40K is now 50/50, since this is a resistance zone. The market continues to maintain a balance of supply and demand in the range of $ 32-40 thousand. Whichever of these levels is the first to surrender, the price will move there further, the analysts explain.

The culmination of Wyckoff may lead Bitcoin again to levels above $ 40,000

The Wyckoff method remains popular despite being proposed nearly a century ago. The current situation in the Bitcoin market is becoming more and more like the culmination of the accumulation phase according to Wyckoff.

Richard Wyckoff is the founder of volume analysis in trading. He developed his famous method in the 30s of the twentieth century. According to this method, the asset successively goes through the phases of accumulation, uptrend, distribution and correction.

Financial analyst Yashu Gola drew attention to the correspondence of the current Bitcoin chart to the schematic representation of the Wyckoff accumulation phase.

Market analyst Kevin Swenson agrees:

In terms of Wyckoff’s method, the lowest low of $ 28.8K is similar to the highest high of $ 65K. Both have the greatest emotional impact on market participants.

Bloomberg Intelligence senior commodity strategist, Mike McGlone, doesn’t cite Wyckoff, but comes to a similar conclusion. From his point of view, the $ 30K level is similar to the $ 4K level in 2019-2020, repeated tests of which led to a stable bull market.

Moreover, according to experts, it is incorrect to talk about the stage of deep correction in this situation, since the Bitcoin price didn’t fall to the level of $ 25 thousand. Therefore, we should expect a quick growth of quotations.

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