Bitcoin’s price has seen some development in the past week, but only for a while before stalling. It seems that the world’s leading cryptocurrency is locked in a tight squeeze, being unable to get over the mid $40,000 range. Buyers are still looking forward to the $50,000 resistance level, with the support in the $40,000 range.
In the past week, the world’s top cryptocurrency has fallen flat. It made a break in the past 48 hours trading for as high as $46,900, but hasn’t been able to go higher. Still, Bitcoin is trading above the 200-day moving average, and in order to resume the trend, it would need to break out of the short-term range.
Declining RSI
According to stats, the relative strength index is declining. That’s mostly because of overbought levels with everyone buying the dip in the recent month. These kinds of situations usually precede price pullbacks. The RSI is slightly negative in terms of divergence with the price momentum waning.
While things aren’t looking great right now, let’s not forget where Bitcoin was a month or two ago. It could barely test the $40,000 range, and even dropped below $30,000 briefly. It has seen a huge jump recently, and although technical indicators aren’t stellar, successful re-testing of the consolidation phase right above $40,000 could see it breaking new ground at $50,000.
According to experts, the Bitcoin rally will pause for a while before new things happen. After the recent positive uptrend, a pause is to be expected, but that’s not a bad thing at all. Many cryptocurrencies take a breather before jumping into a new bull’s rally, which could see the price break higher ground.
Buyers are rightfully exhausted right now as the market settles in a new state. The total crypto market cap surpassed $2 trillion for the first time since May, showing the interest in cryptos is still high. In the most recent crypto rally, Ethereum and Cardano are clear winners, rising nearly and over 30% respectively compared to Bitcoin’s 16% rise. That led many experts to predict a pause soon, which should give way to new great rallies.
Could Bitcoin be Headed for $100,000?
With Bitcoin’s price rebounding from sub $30,000 levels in late June, some analysts are still expecting it to surge to $100,000. Tom Lee from Fundstrat Global Advisors still expects the cryptocurrency to get to $100,000 later this year, which is more than double than it’s mid-August price of $45,000.
Billionaire Tom Draper known for his investments in Tesla, Skype, and Twitter, aims even higher. He expects Bitcoin to break $250,000 by the end of 2022, which is great news for investors. Especially those who bought the most recent dips.
Of course, these are pretty optimistic expectations, with some analysts upping the ante and expecting prices north of $500,000. That may be too high for even Bitcoin, but for the moment, everything is going in the right direction. However, if Bitcoin ever hits $500,000, mining it will spew more CO2 than Brazil or Mexico, which is a serious energy and pollution problem. While that’s the price to pay for record prices, it may be too much to pay for a new crypto record.