The second day of this week has seen a dramatic pullback in bitcoin prices as the biggest cryptocurrency shifts from the $40k mark and settles for $32k-34k. The sudden changes reflected how random changes can occur in the crypto marketplace. Many do believe that this was a bullish trend that occurred out of the bloom.
However, by the end of the last week bitcoin price nearly reached at $40,000 resistance level. But the sharp pullback has been recorded on Monday, where the bitcoin resistance level moved down from the $40,000 mark. The expected price range is predicted between $32,000 and $34,000. The past week has seen a 25% rise in the bitcoin price. In the past week, bitcoin price bitcoin’s initial price constantly remained over the $36,000 mark.
Experts have predicted that the $34,000 price mark will remain stable for quite some time. The bitcoin chart for the past several days exhibited that bitcoin peaked at extreme overtrades levels. As the result, too much currency got spread in the market. This worked as a trickledown effect, the excessive trade and availability of an increased amount of currency by the end of the last week collapsed the market. Hence, bitcoin prices fell down. Overbought conditions typically precede price declines as buyers take profits.
As bitcoin crossed overbought levels, this limited bitcoin’s range beyond the $40,000 mark. Since the upper half was locked for surpassing the $40,000 mark, this went against the bitcoin’s overall price surge. Despite the fact that the current downtrend reduced bitcoin prices. But bitcoin’s demand still remains on the top end. In recent times a tremendous amount of bitcoin ATMs have been installed in the U.S.
It is expected that the bitcoin price will remain between $30,000 to $40,000 for a longer period of time. However, abrupt changes can occur within this price range as crypto currency’s demand is on the rise. Moreover, the recent legal battles and lawsuits against cryptocurrencies also play a pivotal role in creating a bullish trend. Which indicates buyers and sellers are in a deadlock despite occasional rallies and selloffs.
On the other hand, crypto analyst, and writer Damanick Dantes, in his story, published in CoinDesk said that the recent decrease might remain stable but not for too long. In the coming couple of weeks, bitcoin prices are expected to rise again because there are a couple of factors going in the favor of bitcoin. One of the biggest ones is Amazon’s announcement to join the crypto world. However, the company has shared their part of the story that they might launch their own cryptocurrency, but still, it will boost the crypto market. A stable crypto market will further strengthen bitcoin’s overall prices.