Bitcoin (BTC) has rebounded after rising above $ 40,000 and correcting to nearly $ 30,000. However, according to Brian Krogsgard, a trader and podcaster by the name of LedgerStatus on Twitter, it could be good for the asset to stall near $ 42,000 before jumping up.
“Bitcoin’s correction was healthy in a strongly bullish environment, which means the 20-day moving average has been hit again,” Krogsgard told Cointelegraph on Thursday. “With a strong upturn, now is the time to see if we can move up immediately or spend longer on a longer consolidation, which I think would be healthy.”
Bitcoin barely exceeded $ 40,000 on Thursday morning before declining slightly, falling back into the $ 39,000 range at the time of publication, according to TradingView.com data.
Breaking the $ 36,000 mark was a major move for the asset, according to comments from CryptoWendyO, a trader and analyst on Twitter. “Unless we reclaim $ 36,000, I’m not ruling out another decline,” she told Cointelegraph on Jan. 12, before Bitcoin rebounded above levels. The asset recently surged over $ 36,000 with conviction. Bitcoin’s 4-hour price chart is now showing a higher low.
CryptoWendyO’s updated comment shows that the price is bullish right now. She told Cointelegraph on Thursday:
“Bitcoin has seen an amazing rebound in my ~ $ 34,200 support box after that narrow ~ 25% decline. I am in disbelief, but the fundamentals of 2020/2021 are different from previous Bitcoin history. Currently believe I mean that we will continue to rise and will do so. ” We expect to flip $ 42,000 and start a similar run after seeing a drop from ~ $ 34,200 to ~ $ 28,000 on 1/7/2021 to test ~ $ 48,000. “
In terms of recent price movements, Krogsgard sees a correlation to one of the mainstream market bitcoin products. “It appears that the GBTC’s closure and reopening of deposits had a real impact on demand for coins as the reopening of their market bottomed out,” noted Krogsgard. “I think we will continue to see institutional demand for break-ins.”
GBTC is operated by Grayscale and is essentially the share form of Bitcoin, with each share being backed by a fraction of one Bitcoin. The company postponed BTC trust investments in December and reopened this month.