Prospective Bitcoin investors should research current short-term resistance and support levels, according to renowned crypto trader Michael Poppe.
On a bitcoin price chart, resistance levels are instances when the asset’s upward price movement is hampered by an inclination to sell it.
Resistance and support levels
The asset owner may decide to sell because the price may drop if it reaches the resistance level.
A support level, on the other hand, is a price level at which buyers will buy before the price rises above it. When support or resistance levels are broken, good trading chances exist.
Bitcoin, according to Poppe, needs to break through resistance levels of $48,000 and $49,000 in order to climb above $51,000.
The current support levels of $46,000 and $47,000 give a strong platform for recouping recent losses and resuming a positive trend.
If bitcoin falls below the $46K and $47K support levels, Poppe believes it will find support between $41K to $42K.
BTC declined between December 27, 2021 and January 2, 2022, reaching a low of $45.678.
BTC bullish forecasts for 2022
The cryptocurrency community at CoinMarketCap.com is noted for its accuracy in predicting bitcoin’s price.
In the past, the community has been 90.75% accurate. Bitcoin is now expected to price at $52K in January 2022, according to analysts.
In February, 7,7201 community members expect a small correction back to $51,560. BTC’s relative strength index, a momentum indicator, shows a neutral trend.
Antoni Trenchev, the creator of Nexo, stated that he is bullish about bitcoin, predicting a gain of nearly 1000% in 2020 and 63% in 2021.
He expects it will hit $100,000 by the end of the year as a result of institutions “expanding their treasuries and filling them with bitcoin” and larger macroeconomic dynamics that enable crypto to act as an inflation hedge and “gold 2.0.”
Image courtesy of Cointelegraph News/YouTube