During the first week of the new year, Bitcoin continued its impressive uptrend breaking the $ 40K price. However, last weekend the asset went off the track with a considerable setback. With the latest move, analysts have warned investors not to have "weak hands" and miss the next move. Bitcoin is predicted to reach more than $ 50,000.
Bitcoin has found stability after a shaky weekend and at the beginning of the week. Since breaking its previous ATH record of $ 20K in mid-December, the digital asset has remained unstoppable. By the end of 2020, Bitcoin was hitting $ 30K, a year-end record price. After a 3-year bearish period, the impending uptrend has been dominating with minimal pullbacks and extended breakouts. With the first week of the year, Bitcoin had set a new all-time price of $ 40K.
Breaking the $ 40K wall
In just 3 days, Bitcoin has fallen back below $ 35K, marking a drop of more than 20%. Start of a bear market? Since the last bear market lasted more than 3 years, investors should be clear that it takes more than a few days or weeks before a trend sets in. Bitcoin is far from being proclaimed bearish. This especially considering the fundamentals that remain healthy and the fact that it remains above higher lows.
Active addresses: ATH
Active entities: ATH
Hash Rate: ATH
Number of whales: ATH
Illiquid supply: ATH
Non-zero BTC addresses: ATH
Don’t let short-term $ BTC price action distract you.
Fundamentals are strong.
The network is healthy.
– Rafael Schultze-Kraft (@ n3ocortex) January 11, 2021
Also, historically setbacks have not necessarily been a bad thing. Investors sometimes have the opportunity to buy lower and profit on the way back. This recent pullback could be especially good for investors.
Historically, a 30% pullback for Bitcoin has been followed by 150% price growth. With Bitcoin hitting as high as 20% in no time, a bounce could put Bitcoin on track to set a new record well above $ 50K.
In the last 24 hours, the digital asset has been stable, hovering just above $ 37,000 and registering a marginal change. As the asset gets back on the winning track, investors should expect a wall at the recent $ 40K with some big players cashing in. But as soon as they are phased out Bitcon will be ready for a monumental win above $ 50K.