Key facts:
For Tenkan Trading, we are facing some key months for the price of bitcoin.
Other traders anticipate further bullish moves in the near future.
For the past few weeks, the bitcoin price appears to have been stuck in a sideways phase. It does not break $45,000 on the upside, but it does not lose support either and remains above $33,000 at all times.
The big difference that has been seen lately in the price of bitcoin (BTC) has been a rally for the lows. That is to say, that the floor on which it has perched looks higher and higher.
But by not breaking out to the upside, and remaining sideways, it raises a lot of uncertainty about possible movements in the short term. For the Argentine trader and analyst known on Twitter as Tenkan TradingIn fact, this phase also creates some disappointment in short-term investors.
In his own words, the current lateralization “disappoints participants as many have entered this world at all-time highs in the $63,000 zone.”
Through an exclusive contact with CriptoNoticias, the market analyst commented that, despite how disappointing this moment may be for certain investors, it is something natural.
After the big move up last year and any others like it, he argues, there must always be a correction. In some cases, it will be with a steep drop, while in others it will be lateral for some time. The latter is the scenario today, he says.
Now, with bitcoin holding in a relatively close price range for the past few weeks, will this sense of stabilization be sustainable for the asset in the market?
Bitcoin has good support
“It’s important to see that $30,000 is great price support, which you should hold to see a bullish bitcoin,” Tenkan Trading says, reiterating a point we’ve made earlier on CryptoNews.
Not only is there clear support in that figure (so far this year we have never seen bitcoin go below it), but also for the last few weeks, the minimum market values for the cryptocurrency have been getting higher and higher.
Already other analysts have referred to the current period as one of consolidation for the price of the cryptocurrency in the market. And the consolidation of an increasingly higher floor also coincides with the average purchase price that is around the largest number of bitcoins in circulation, as we have also recently reviewed in this newspaper.
Both the average and the floor that have been forming are just below $40,000, making that area look attractive to buy at present while further upward moves are expected.
March, month of important movements for bitcoin
Tenkan Trading did not directly refer to what could happen in the shortest period of time. But yes He assured that “we are in key months for bitcoin.” In that sense, he cited March as a month that has historically presented important price movements, or in any case has preceded them.
At least, that’s how it has been in recent years. In 2019, it was up more than 7% during the month of March and set the precedent for topping out near $14,000 a couple of months later, after starting March just under $4,000.
In 2020 it was the drop to visit 3,800 again, following the declaration of a pandemic; while in March 2021 the $60,000 barrier for BTC was broken for the first time in history.
“This is why I think these are more than important weeks where we should not stop looking at the price,” says the trader,
His reading for the long term is bullish. At least from a technical point of view. In fact, he considered that the volatility in the short term means that, even with very strong falls in price, the trend can continue to be bullish. As we can see in the complete history of bitcoin in the market.
On the other hand, he considered that last year was a great year for the bitcoin and cryptocurrency ecosystem. To a great extent, with the visibility given to this world by the growth of the phenomenon of collectible tokens, NFT; or decentralized finance (DeFI).
“We are seeing that today a large flow of fiat money is entering the ecosystem, which will make good blockchain projects rise in value. Clearly, if this stays on the same page for this year (2022), it would also be a positive year.”
Tenkan Trading, trader and market analyst.
What other traders say
In addition to Tenkan Trading, other specialists have recently spoken about their expectations for the price of bitcoin in the near future. Among them, Immortal Crypto has been direct.
Via Twitter, the analyst claimed to be bullish and forecast higher prices for this week. “We could test the demand at another time, but ultimately, I think we will see higher prices this week,” he posted on the social network on Monday, March 21.
For his part, Juan Rodríguez (known as @juanbiter) already had assured in one of his YouTube videos that the price range around $42,000 would be important this week, given the imminent expiration of quarterly options in the derivatives market.
Meanwhile, Rodríguez added, the trend continues (in his opinion) towards recovery. A next price target could be around $46,000. That is, above the current resistance that we have reported in this medium.