BTC price is in free fall again as the price drops to $41,600, but analysts are still waiting for “another upward move.”
Market Update
The broader crypto market continues to see variable price action, moving sideways on January 17 with Bitcoin (BTC) experiencing a midday drop to $41,650. Across the market, trading volume remained down and US financial markets were closed for the Martin Luther King Jr. holiday.
Here’s what analysts are saying about Bitcoin’s price action and the impact today’s correction could have on BTC’s market structure.
Key resistance at $43,120
Analysis of weekly Bitcoin price action provided by crypto trader and Twitter user nicknamed ‘Rekt Capital’, who posted The following chart shows BTC trading near a well-established support and resistance area.
Rekt Money said,
“BTC’s new weekly close shows the black $43,120 level being seen as new resistance. Technically, BTC continues to be in the upper part of its current $38000-$43,100 range. ”
Bitcoin’s 4-year cycle is starting to get longer
Market analyst and Cointelegraph contributor Michaël van de Poppe discussed the long-term trend of Bitcoin. posted The following charts look at Bitcoin’s 4-wave pattern and the HODL Cap waves made. According to the analyst, there is a chance that BTC’s typical 4-year cycle could be lengthening.
van de Poppe says,
“Honestly, it would make a lot of sense. This cycle is longer than the previous one. The 4-year cycle no longer occurs due to the impact of macroeconomics. Hence, this cycle will be higher & longer than one would expect”.
Related: Bitcoin stays in tight range as analyst eyes potential BTC ‘interesting week’
“At least one more upward impulse”
The sentiment of a prolonged Bitcoin price cycle was echoed in a tweet from the crypto analyst and Twitter user nicknamed ‘Techdev’, who posted The following chart provides an analysis of “impulsion and correction in cyclical bull markets based on new on-chain address trends.”
Compared to previous impulse waves outlined by Techdev, Bitcoin will still have a green-shaded price breakout in the current cycle before it resets and begins the next.
Techdev said,
“In my opinion, at least one more upward impulse should emerge before an impulsive downtrend (bear market) begins.”
The overall crypto market cap is currently $2.02 trillion and Bitcoin dominance is 39.6%.