Bitcoin edged closer to $40k earlier today as the the short-term bullish fightback continued on for today. The largest cryptocurrency by market capitalization suffered a major price tank a couple of weeks ago and it has since wandered below $40k mostly with much of the time time spent below $37k. Now the index is once again knocking at the gates of $40k but some traders believe another dip may be needed to continue with the long-term bull run.
Where is the Bottom?
After the recent price tank, Bitcoin has teased a move further below. It reached as low as $30k in the move two times since then but the bulls managed to defend that level effectively and have thwarted attempts to go below it. Now the debate is whether or not the cryptocurrency has achieved the bottom during the recent price tank or not. Also, if the price bottom has been achieved, will the index go below once again to test it?
Will Bitcoin go Below Again?
These are speculative questions but according to some traders, a move below is expected. The extent of the price pullback is not yet known ofcourse but it is likely to be below $35k. According to widely used bottom finding statistics, Bitcoin has already reached the bottom and is currently in recovery mode so it remains to be seen just how low the digital asset’s worth will go.
Crypto Ed, a popular crypto trader tweeted:
I think we’re close to a reversal and a correction during the day before up again,”
BTC to $36k and ETH $2500? Might be a boring day….”
Overall, the premier digital currency is expected to have a bearish immediate outcome for the near future and then recovery from it effectively. Alternatively, the index has defended the $30k support twice already and may not need to do it third time at all. It might rise up above $40k effectively and then slowly regain its lost momentum. Considering the cryptocurrency needs to rise more than 62% even at $40k to extend the bull run above $65k, it is a long way to go for the digital currency. It may take some time to steady itself before continuing and catching up with the long-term bullish trend.
Image Source: pixabay.com