The world’s largest cryptocurrency Bitcoin (BTC) has continued to show sideways movement as the price consolidates around $51,000. BTC registered its first negative weekly closing in around four weeks as the Bitcoin price started a rally towards $52,000 in late January. At press time, BTC is trading 0.14% down at a price of $51,500 with a market cap of $1,011 billion.
Key Bitcoin (BTC) Price Range to Watch
While everyone is eagerly awaiting a rally in March ahead of the Bitcoin halving event, JPMorgan believes that the rally is already priced in.
Popular crypto analyst Ali Martinez reports that the Bitcoin price is trading between two significant supply zones that could determine its short-term trajectory. The first supply zone, serving as a critical support level, ranges from $50,000 to $51,570, where approximately 1.3 million addresses hold a total of 670,220 BTC.
Conversely, the second zone, acting as a formidable resistance barrier, spans from $51,640 to $53,200, with 752,600 addresses collectively holding 351,600 BTC. However, citing data from Coinglass, Martinez also noted that “$76.38 million will be liquidated across the board if Bitcoin price jumps to $52,250!”
Analysts suggest that a decisive break above the resistance zone could pave the way for a bullish upswing toward $57,130. Conversely, failure to hold above the support zone may signal a corrective movement towards $47,700.
BTC Price Drop to $40,000 Not Ruled Out
Some market analysts have also asked investors to be cautious at this stage noting that Bitcoin price upside looks limited from here onwards. Crypto analyst Michael van de Poppe expressed uncertainty regarding the possibility of an imminent correction in Bitcoin’s price.
He anticipates that the current rally could reach its peak within the $54,000 to $58,000 range. Following this peak, he predicts a significant correction to the $40,000 to $42,000 range, likely occurring after the halving event.
Furthermore, many market analysts are expecting a major correction on Wall Street this year. Last week, Bitcoin maximalist Max Keiser stated that a 1987-like correction is likely on Wall Street. Historically, Bitcoin price and the crypto market have crashed every time there’s been a major correction on Wall Street. However, Max Keiser believes that Bitcoin will prove to be a risk-off asset this time.
This is a common misperception; #Bitcoin is a risk-off asset and the greatest safe haven asset available. https://t.co/dqltY7eGzq
— Max Keiser (@maxkeiser) February 25, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
