Bitcoin has a rough start to the year 2022. The entire crypto market has taken a hit, with the flagship currency dropping by 29% in a month. BTC price tried to recover steadily, hitting above $38,000 on Wednesday, January 26, but was unable to maintain its upward pace.
Bitcoin Price Analysis
At Press time the bitcoin price is trading at the $37,545.30 range, with a market cap of $710,784,465,170. Currently, the initial resistance is at $38,478. Bitcoin would need plenty of support, however, to break out from Friday’s high $38,055. If the uptrend continues Bitcoin can test the major resistance at $40k.
On the other hand, if BTC Price Fails to surge above the $38K level, a fall through the day’s pivot would bring the first major support level at $36,620 in play. An extended sell-off would bring sub-$35,000 levels into play. The second major support level sits at $35,479.
BTC Price Dropping $20k is Very Unlikely
In a new interview, Alden claims that now that the market is mature, large price swings in Bitcoin are less likely.
“I’d be somewhat surprised to see a sub 20,000 print. I don’t rule it out as an option though. One way I would describe it is that Bitcoin had these 85% drops in the past, but also had massive blow-off tops in the past.
According to her, the majority of the indicators did not reach the same level of exuberance in this cycle, so you’re essentially assessing it from a less severe peaking position. It had a rolling top rather than a massive spike. Basically, I believe the market is more mature, therefore I’d be astonished to see a 20,000 print.”
Despite her confidence, Alden believes that a Bitcoin crash is still a possibility in certain situations.
“The environment that I can imagine getting there, if I would have put on my bear hat for a second, it would basically be that the Fed’s tightening or at least talking about tightening.I think if you have a liquidity event, if you have credit markets freeze, if you have some sort of major events like that, I could see a very illiquid Bitcoin spike down.I think barring that, I’d be somewhat surprised to see a sub $20,000 sustained level.”
