Bitcoin once again managed to step up to $ 43,000. It is the consensus of many analysts that these levels are critical. In this article, we take a look at the main factors that can affect the market. Analysts list possible next levels and developments that could be catalysts.
Bitcoin price may rise for these reasons
Bitcoin (BTC) demand has sustained the “bear market” all year, but will likely trigger a new price surge. This comment was made by Lyn Alden, who bet on the snowball effect in demand and boosting BTC price action in a Twitter discussion. Responding to a survey by PlanB, Alden said that it is more likely to cause a BTC price boom than many other events favored by the bulls. These include the United States, which has approved a spot price-based exchange-traded fund, a country that follows El Salvador to make Bitcoin legal tender, developments in the Lightning Network, and the impact of Bitcoin’s recent Taproot upgrade to Blockchain.
Instead, Alden agreed with Blockstream CEO Adam Back that significant change is coming as a result of a positive feedback loop from supply and demand. Back described the process as “a shortage of supply as more cryptocurrencies move into cold storage, continue to buy, rise in price, and then be chased by reflexivity.”
But analyzing the current state of supply versus demand, Alden confirmed that 2021 has done little to change the status quo since the first quarter.
Responding to Alden, popular trader and analyst William Clemente said he “completely agrees” with this viewpoint. Part of the tweet said “supply side looks great, hold behavior is strong”. Clemente added:
Bitcoin’s qualitative outlook is in favor of the bulls, the problem is that demand is likely to decline due to uncertainty in monetary policy.
Bitcoin’s (BTC) time is running out to save the bull market
Let’s end with veteran trader Tone Vays. In a recent strategy session, Vays said that he is optimistic about Bitcoin’s chances of recapturing the $49,000 level, but that time is running out for it to move higher. The technical part includes:
I am optimistic that we will return to the triangle for January and possibly be above the short-term moving average, which means we should close the month above or very near $49,000. Better hurry as there are 11 days left until the end of the month. The weekly chart is bullish on MRI only. Judging by the metrics, it is in a bearish trend. After the levels of $ 41,700, $ 44,000 may come. If it does, a small needle to $38,000 or below is likely.
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