The broader cryptocurrency market continued to see erratic and sideways price action on Jan. 17, with Bitcoin (BTC) seeing a midday drop to $41,650. Market-wide, trading volumes remain subdued and US financial markets were closed for the Martin Luther King Jr. Day celebration.
Here’s what analysts are saying about Bitcoin’s price action and the impact today’s correction could have on the BTC market structure.
There is a major resistance at $43.120
Analysis of Bitcoin’s weekly price action was provided by cryptocurrency trader and pseudonymous Twitter user ‘Rekt Capital’, who public the chart below showing that the flagship cryptocurrency is trading near a well-established support and resistance zone.
The analyst said:
“BTC’s new weekly close shows that the ~$43,120 black level is acting as new resistance. Technically, BTC continues to reside in the upper region of its current $38,000-$43,100 range.”
Bitcoin’s 4-year cycle begins to lengthen
Market analyst and Cointelegraph contributor Michaël van de Poppe analyzed the long-term trend of Bitcoin and has published the following charts showing the 4-wave pattern of Bitcoin and the HODL waves of realized capitalization. According to the analyst, there is a possibility that the typical 4-year cycle for BTC is getting longer.
Van de Poppe said:
“Honestly, it would make a lot of sense. This cycle is longer than the previous one. 4-year cycles don’t happen anymore due to macroeconomic shocks. So this cycle will be higher and longer than everyone expects.”
“At least one more push to the upside”
The sentiment of a lengthening Bitcoin price cycle was echoed in a tweet from cryptocurrency analyst and pseudonymous Twitter user, ‘Techdev’, who public the chart below analyzing “impulses and corrections throughout the bull market cycles based on new on-chain address trends.”
Compared to previous impulse waves outlined by Techdev, Bitcoin is still due for a green-shaded price breakout in the current cycle before it resets and begins the next.
The analyst stated:
“In my opinion, at least one more push to the upside before an impulsive downtrend (bear market) begins.”
The total cryptocurrency market capitalization currently stands at $2.02 trillion and the dominance rate of Bitcoin is 39.6%.
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