- Bitcoin (BTC), the leading cryptocurrency globally, continues a consolidation process near the $51,000 level.
- While everyone eagerly anticipates a rally before the Bitcoin halving event in March, JPMorgan believes the rally is already priced in.
- Analysts suggest that a steady break above the resistance zone could pave the way for a bullish trend towards $57,130.
As Bitcoin hovers around $51,000, analysts are sharing their predictions on whether Bitcoin will undergo a correction.
Volatility Decreases in Bitcoin Price
Bitcoin (BTC), the leading cryptocurrency globally, is going through a consolidation process near the $51,000 level. After initiating a rally towards $52,000 in late January, BTC observed its first negative weekly close in about four weeks. Currently, BTC is trading around $51,500 with a slight decline, and its market capitalization is $1.011 trillion.
While everyone eagerly anticipates a rally before the Bitcoin halving event in March, JPMorgan believes the rally is already priced in. According to a report by popular crypto analyst Ali Martinez, the Bitcoin price is trading between two crucial supply zones that could determine its short-term trend. The first supply zone extends to a critical support level ranging from $50,000 to $51,570, holding approximately 1.3 million addresses with a total of 670,220 BTC.
On the other hand, the second zone extends between $51,640 and $53,200, serving as an effective resistance barrier and having 351,600 BTC held by 752,600 addresses. However, Martinez also referenced data from Coinglass, stating, “If the Bitcoin price jumps to $52,250, a total of $76.38 million will be wiped out!”
Analysts suggest that a steady break above the resistance zone could pave the way for a bullish trend towards $57,130. On the other hand, a failure to hold above the support zone may indicate a correction movement towards $47,700.
Consideration of Bitcoin Dropping to $40,000 Level
Some market analysts are advising caution to investors at this stage, noting that the Bitcoin price appears limited from here on. Crypto analyst Michael van de Poppe expressed uncertainty about the possibility of a correction in the Bitcoin price in the near future.
He predicts that the ongoing rally could peak in the range of $54,000 to $58,000. After this peak, he anticipates a significant correction in the range of $40,000 to $42,000 that could occur after the halving event.
Moreover, many market analysts suggest that a significant correction is expected on Wall Street this year. Last week, Bitcoin maximalist Max Keiser mentioned the possibility of a correction similar to 1987 on Wall Street. Historically, whenever there has been a major correction on Wall Street, the Bitcoin price and the crypto market have collapsed. However, Max Keiser believes that this time Bitcoin will be a safe-haven asset.
