Connect with us

Hi, what are you looking for?

Top Stories

Analysts say Bitcoin price is in the ‘profit-taking’ zone with a ceiling at $45K

The price action for Bitcoin (BTC) continues to tantalize investors and once again, concerns over the state of the global economy and rising inflation have prompted warnings that the Fed’s upcoming interest rate hikes could do more damage then good to the state of the market.

Data from Cointelegraph Markets Pro and TradingView shows that the price of BTC has hovered near the $43,000 support level in trading on Feb. 11 after rallying 20% from the $37,000 leve over the past week.

e7ed018f 37f8 41e4 adca a316ccc47c3d
BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what analysts expect next for BTC and the wider cryptocurrency market.

“Expecting a move to $40,000”

Insight into the bullish and bearish scenarios related to Bitcoin price was offered by crypto trader and pseudonymous Twitter analyst ‘Crypto_Ed_NL’, who posted the following chart outlining two possible BTC price trajectories.

9c207cbb 2a93 4753 9071 4c91d5b73c39
BTC/USDT 4-hour chart. Source: Twitter

Crypto_Ed_NL said,

“Checking my latest chart with the current situation. Nothing changed. Expecting a move towards $40,000. Bullish scenario indicates a bounce to $48,000. Bearish comes in play when we break $40,000.”

A confluence of resistance levels for BTC

Bitcoin now finds itself trading in an increasingly tighter rage at these current levels in large part due to “the sharp $12,000 move off the lows” of Feb. 4, according to a recent report from Delphi Digital, which noted that BTC is now “heading into resistance on multiple timeframes.”

As the price action for BTC heads toward a confluence of daily, weekly and monthly resistance, Delphi Digital analysts suggest that “market participants of all kinds will be looking at this as a potential price ceiling” and that it represents “a logical place to expect profit-taking/risk reduction activity due to the confluence of resistance zones and the speed and magnitude of the move off recent lows.”

e9ed0a44 e801 4d19 a228 4be3f7860c71
BTC/USD 8-hour chart. Source: Delphi Digital

As for the key areas to keep an eye on moving forward, Delphi Digital highlighted a significant amount of support for BTC in the $40,000 to $41,000 range with the next level of support below that at $38,500.

When it comes to the possibility of a move higher for BTC, Delphi Digital listed the zone from $46,000 to $48,000 as a heavy resistance area.

The report noted that,

Advertisement. Scroll to continue reading.

“This is the daily, weekly and monthly supply zones that will likely be a heavy level of resistance. Above this level and we likely see a squeeze towards $50,000.”

On a positive note, Delphi Digital also highlighted the recent uptick in institutional flows over the past couple of weeks “as the market started to stage a comeback.”

de5d2047 af3c 40bc a80e c1bea577ee34
Monthly fund flows for select digital asset investment product groups. Source: Delphi Digital

According to Delphi Digital, Grayscale is the biggest player in the institutional game with “roughly 65% of Institutional AUM,” but there are signs emerging that sentiment is beginning to shift.

Delphi Digital said,

“Excluding BTC and ETH, Binance Coin (BNB), and BNB-based products, have continued to attract the most AUM, but institutional sentiment is starting to favor alternative names like SOL.”

Related: Bitcoin stuck in a tight range as BTC price moving averages prepare key bullish cross

Bulls could exploit this classic trading pattern

A final bullish perspective for BTC moving forward was offered by crypto analyst and pseudonymous Twitter user ‘IamCryptoWolf’, who posted the following chart outlining one possible Bitcoin price trajectory.

282f5b5c 3404 4643 858b 663b32e296b0
BTC/USD 1-day chart. Source: Twitter

IamCryptoWolf said,

“Everyone calling for $46,000, what if $50K –> $46K –> $60K, printing an inverse head and shoulders?”

The overall cryptocurrency market cap now stands at $1.97 trillion and Bitcoin’s dominance rate is 41.9%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.