The larger cryptocurrency environment remains in an increased state of worry on Dec. 6 after the Dec. 3 market sell-off continues to send out ripples throughout the the sector and Bitcoin (BTC) price stays pinned listed below $50,000.
Data from Cointelegraph Markets Pro and TradingView reveals that bulls are handling to hold BTC price above $49,000 however the basic outlook recommends that extra days of combination remain in shop.
Here’s a take a look at what analysts are stating about what to expect from BTC price in the coming weeks.
Strong assistance in the lower $40,000s
Insight into the weekly price action for Bitcoin was supplied by market expert and pseudonymous Twitter user Rekt Capital who posted the following chart highlighting the significant assistance and resistance zones traders must watch on.
Rekt Capital stated,
“BTC Weekly closed above the small red area from which BTC has previously rebounded. BTC is threatening to lose this area but no confirmed breakdown. Just below this area is the orange region, a strong demand area which ended two -25% corrections in February and September.”
Short term recovery to $52,000
Traders looking to avoid choppy price action in the days ahead would be wise to sit on the sidelines and wait for the market to digest this latest pullback according to analyst and pseudonymous Twitter user Pentoshi, who posted the following chart suggesting a short term recovery in BTC price to $52,000.
While the analyst does see an eventual recovery in the longer term, Pentoshi warned that the market could be choppy in the short term and traders may find a better entry point if they remain patient.
“I can see BTC short-term trading back towards $52,000 but I think if you wait a few days/week you’ll avoid chop. Buy in low to mid $40,000s. Not get trapped. Don’t see a reason to take new longs here atm. Going to wait for a new trade to come to me.”
Related: Bitcoin could ‘drive people nuts’ for months with $53K BTC price ceiling — analyst
Expect “chop” between $42,000 and $53,000
A final bit of insight was offered by independent market analyst Scott Melker, who posted the following tweet laying out the price levels traders need to monitor closely.
My general view.
>53K again resumes the bullish case
<42K again puts 28K back in play
Everything between the 2 numbers now is ranging chop that will drive traders into a panic.
People will be extremely bullish at 53K and bearish at 42K, if either is reached.
— The Wolf Of All Streets (@scottmelker) December 6, 2021
As seen in the above tweet, Melker recognized the variety between $42,000 and $53,000 as the choppy zone that will drive traders nuts, while a breakout above that zone is a favorable indication for bulls. According to Melker, rates listed below $42,000 will show that bears have the upper hand in determining BTC price for the foreseeable future.
The general cryptocurrency market cap now stands at $2.285 trillion and Bitcoin’s supremacy rate is 40.6%.
The views and viewpoints revealed here are entirely those of the author and do not always show the views of Cointelegraph.com. Every financial investment and trading relocation includes threat, you must perform your own research study when deciding.