Bitcointhe flagship cryptocurrency continued its bearish momentum, potentially heading towards the $50,000 level after failing to revisit the $73,000 level. However, Doctor Profit, a renowned cryptocurrency expert and enthusiast, given the price fluctuations, identified that Bitcoin is currently trading in a clear price range, indicating a period of consolidation.
Bitcoin’s price range is clear
To start, crypto analyst Doctor Profit addressed the ongoing notion in the cryptocurrency community that the market moves unexpectedly. According to Doctor Profit, this is not entirely true, as he believes that moves are always to be expected, especially now that the year has started with such a gigantic sideways movement.
Therefore, for those who are just entering the market, he emphasized that BTCThe price range is clear as it ranges between $72,000 and $56,000-$57,000, which indicates the upper and lower limits of the field shown in the chart. Despite this, some members of the community still argue that the scope is extremely broad.
While they may be right about the complexity of the range, Doctor Profit noted that when comparing vital Fibonacci resistance levels with vital moving averages and the ideal liquidity level created every time Bitcoin tops or bottoms out, this range proves to be the most true. He further said that market makers have a motive to choose this range, using the significance of the chart pattern to support their claims.
He stated:
Market makers chose this range for a reason. You can hate it all you want, but look at the facts and the chart and you will notice the absolute precision of the box and the undeniable profitability of buying at the bottom of the box since the beginning of the year, and the chart is proof of that.
Doctor Profit believes that the concerns surrounding the modern Middle East Crisis have been putting forceful selling pressure on Bitcoin recently. Amid speculation about whether Iran will attack and how Israel will respond to the cryptocurrency boom, the expert said either scenario could ease market concerns or augment them.
At this point, the analyst urges investors to pay attention to those that are most involved in the transfer of BTC rather than panic selling on tender players, noting that gigantic players understand that buying BTC at the lowest price, which is an true indicator of the local bottom, is very profitable.
Impact of Recent BTC Drops in 2020
The recent decline in the value of Bitcoin has led to increased uncertainty and fear in the market as most of the positions have been liquidated in the past few days. After the mass liquidation, Mike Alfred, a cryptocurrency investor, Claims the development is similar to that of 2020.
Alfred adapts the trend to a specific scenario in March 2020when mass liquidations during that period caused the price of BTC to fall from $8,000 to around $4,000. However, the expert believes the recent decline could end sooner than expected, urging investors to look out for gigantic wicks that reverse quickly.
Featured image from Adobe Stock, chart from Tradingview.com
