After his rise of more than $ 40,000, and a correction back to nearly $ 30,000, Bitcoin (BTC) has been restored. According to Brian Krogsgard, a trader and podcaster named LedgerStatus on Twitter, it would be okay to stop before jumping back up past highs near $ 42,000.
“Bitcoin’s correction was healthy in a highly bullish environment, representing a return to the 20-day moving average,” Krogsgard told Cointelegraph on Thursday. “Now that there’s a strong rebound, it’s time to see if it will go up immediately, or spend longer in sustained consolidation, which I think would be healthy.”
Bitcoin barely surpassed $ 40,000 on Thursday morning to repeat something, falling back in the $ 39,000 range, according to TradingView.com data at the time of publication.
According to comments from CryptoWendyO, a trader and analyst on Twitter, crossing the $ 36,000 mark was a significant step for the asset. “Unless we reclaim $ 36,000, I am not ruling out a further decline,” she told Cointelegraph on Jan. 12, before Bitcoin’s recovery surpassed levels. The asset recently pushed more than $ 36,000 with conviction. Bitcoin’s price chart over 4 hours is now showing a higher low.
Updated commentary from CryptoWendyO is currently showing optimism about the price. She told Cointelegraph on Thursday:
Bitcoin has experienced an amazing rebound at my support box of ~ $ 34,200 after that horrific ~ 25% drop. I don’t believe myself, but the foundation of 2020/2021 is different from previous Bitcoin history, currently I think we will continue to rise and am expecting to turn over $ 42,000 and do a similar run after seeing a drop from ~ $ 34,200 to ~ $ 28,000 on 7/1/2021 to test ~ $ 48,000. “
Regarding the recent price action, Krogsgard sees a connection to one of the mainstream market’s Bitcoin products. “It appears that the closing and reopening of the GBTC for deposits had a real impact on the demand for coins as the reopening of their market marked the low point,” said Krogsgard. “I believe we will continue to see an institutional demand at any time.”
Run by Grayscale, GBTC is essentially Bitcoin’s stock form, with each share backed by a fraction of one Bitcoin. The company continued BTC trust investments in December and she reopened this month.