As of publication, the bitcoin market is correcting upwards as the bulls strive to take over, temporarily putting an end to the widescale bearish market trend.
Bitcoin could hit $59k or go as low as $20k in the coming weeks
The market recently took a downward reversal as Bitcoin slid to $31k, Sustaining losses of 10% while the leading altcoins recorded losses as high as 25%.
The road ahead is gloomy for the leading cryptocurrency, as the market awaits the liquidation of long positions. While certain analysts have spotted an extremely volatile market in the short term, a few others are presenting mixed sentiments in their assertion of the market.
The next stop for Bitcoin has been predicted by on-chain analyst William Clemente who notes that the market could go in two directions. The analyst who has, over the past months affirmed that the bitcoin market is mainly headed for a continuous bull run, is still largely standing by his discretion.
However, in his recent revelation, Clemente leaves room for the possibility of a downward swing, which could take the already struggling asset down to as low as $20,000, a price mark that Bitcoin last saw on the 17th of December 2020.
“In the shorter term, some key price resistances to the upside are the 200DMA (~$47,750), $50K, $53K, and $59K. In terms of support, the strongest zones are $30K of course, but then $20K after. If $30K is broken I would see $20K as the next likely support level based on price structure and on-chain volume.” asserts the analyst.
A surprising trend is brewing as Bitcoin recovers
The current bull market as analysts have noted repeatedly has been driven by institutional investors. However, new on-chain data shows that retail traders are no longer a weak link in the market. In fact, retail traders have begun to buy more Bitcoins from big players who seem to be partaking in the major sell-off.
“…. supply held by entities with .001 BTC to 1 BTC continues to grow. Overall, it seems that retail is accumulating while whales sell-off.” writes the analyst.
However, this is not a sign that the market is in a danger zone. Clemente explains that the buying and selling from different parties do not take away from the fact that the market “is no longer selling at a loss on aggregate,” which according to him is ”a sharp uptick is a sign of a recovery.”