BTC Is Primed For A New Rally Back Towards $40K Or Higher
BTC is primed for a new rally back to the $40K level or even higher as the price is now hovering under the $37,000 after the correction ended in the past 72 hours. Trader Peter Brandt even thinks that BTC will face a complicated correction or a new rally so let’s read further in today’s bitcoin news.
Brandt who is a long-time trader pointed to the daily price chart of BTC explaining that the range is tightening so with the range of the asset doing this and volatility drops, another price movement occurs. Whether BTC will see a stronger rally upwards or will see a correction remaining uncertain. When it comes to the tight range like this one, the first impulse move is usually a rally then a bigger upside happens as Brandt said:
“Interest juncture in $BTC. Could be wrong, but I think market needs to blast off from here or a more complicated correction will occur. We’ll see.”
Raoul Pal who is the CEO of Real Vision Group thinks similarly and referred to Brandt’s tweet:
“Yes, totally agree. A triangle likes this will provide a big move one way or the other.”
There are some strong arguments to justify both the bearish pullback and a bullish retest of the $42,000 which was the all-time high of BTC. The Coinbase premium is possible to return and will provide even more conviction that the BTC rally will resume. One positive trend is that the deposits from the whales into exchanges are dropping which means that the overall pressure on the market is quite lower than where it was over the past few weeks. The market is still stagnant because it is seeing lower selling pressure from the whales but the buyer demand is not as high as it was. BTC will need to see more stablecoin deposits into exchanges so the Coinbase premium to return to see a stronger argument for another upside.
As BTC is primed for a new rally, Cantering Clark noted that the US dollar performance is another variable that will affect BTC:
“Too much certainty in the market right now. I am taking a bit of risk off the table. Also, CB leading the selling and not picking up at the lows. Long-term expectations are higher, but in the short term, I think the coming week will be a volatile one. Interested in seeing how Yellen’s comments affect the dollar.”