Bitcoin (BTC) Price Can Correct to $34,000, Expect Multi-Month Stagnation

Bhushan Akolkar
January 19, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Factors Driving Success

The world’s largest cryptocurrency Bitcoin (BTC) has experienced substantial selling pressure recently with the BTC price crashing to $40,000 earlier today. This has happened as there have been large outflows from the Grayscale Bitcoin Trust (GBTC) moving into the newly launched Bitcoin ETFs.

Bitcoin Price Can Correct to $34,000

Renowned crypto analyst Ali Martinez has pointed out the adherence of Bitcoin’s price movements to a parallel channel. According to Martinez, this indicates that Bitcoin encountered resistance at the upper boundary of the channel, situated at $48,000.

The analyst anticipates a retracement for Bitcoin, projecting a decline to the lower boundary at $34,000. Subsequently, Martinez foresees a rebound, with Bitcoin aiming to revisit the upper boundary, which is set at $57,000. This observation provides valuable insights into the potential price trajectory of Bitcoin, offering a perspective on key support and resistance levels within the established parallel channel.

Courtesy: Ali Martinez

Santiment, a prominent on-chain data provider, reports that traders continue to maintain optimism regarding the long-term implications of the approval of 11 initial Spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10th. However, Santiment highlights a notable shift in sentiment, suggesting that the Fear of Missing Out (FOMO) surrounding the approvals may have contributed to a local cryptocurrency market top.

Experts posit that the widely anticipated approvals were already factored into market prices at the time of the announcements, leading to a subsequent decline in Bitcoin’s value. After Bitcoin experienced a significant drop to $40.6K, representing a 16.9% decrease from its peak market value the previous week, Santiment observes that the narrative surrounding these ETFs might shift.

Courtesy: Santiment

There is a keen interest in monitoring whether the crowd’s sentiment turns negative, associating words like “scam,” “ripoff,” or “disaster” with the approved ETFs. If a bearish sentiment emerges around the subject that initially drove prices higher from October through December, Santiment anticipates that Fear, Uncertainty, and Doubt (FUD) could trigger selloffs from novice traders.

Expect Multi-Month Stagnation

In a recent analysis, On-chain College suggests that a multi-month correction or stagnation for Bitcoin price could be in the making. Such a trend, according to the analysis, does not necessarily signal an impending bear market and could potentially pave the way further for a robust bull run in the future as coins transition to stronger hands within the market.

Courtesy: On-chain College

Amidst the current market conditions, attention stays on the short-term cost basis for Bitcoin, currently situated at $37.8K. Historically, this level has also served as a support level during bull markets and a resistance level during bear markets, adding significance to its role in shaping market dynamics. The insights provided by On-chain College further offer a nuanced perspective on the potential trajectories for Bitcoin price, acknowledging the historical implications of key price levels in influencing market trends.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.