The wider cryptocurrency market continued to see choppy, sideways price action on Jan. 17 with Bitcoin (BTC) experiencing a midday dip to $41,650. Across the market, trading volumes remain subdued and U.S. financial markets were closed in observation of the Martin Luther King Jr. holiday.
BTC/USDT 1-day chart. Source: TradingView
Here’s what analysts are saying about Bitcoin’s price action and the impact today’s correction might have on BTC’s market structure.
Major resistance at $43,120
Analysis of the weekly Bitcoin price action was provided by crypto trader and pseudonymous Twitter user ‘Rekt Capital’ who posted the following chart showing that BTC is trading near a well-established support and resistance zone.
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said,
“The new BTC Weekly Close shows that the black ~$43,120 level is figuring as new resistance. Technically, BTC continues to reside at the upper region of its current $38000-$43,100 range.”
Bitcoin’s 4-year cycle is starting to lengthen
A look at the long-term trend for Bitcoin was discussed by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following charts looking at the Bitcoin’s 4-waves pattern and Realized Cap HODL Waves. According to the analyst, there is a possibility that the typical 4-year cycle for BTC may be lengthening.
Bitcoin 4-wave pattern and realized cap HODL waves. Source: Twitter
van de Poppe said,
“Honestly, it would make a lot of sense. This cycle is longer than the previous one. The 4-year cycles aren’t happening anymore due to macroeconomic impacts. Therefore, this cycle will be higher & longer than everyone expects.”
“At least one more upward impulse”
The sentiment of a lengthening Bitcoin price cycle were echoed in a tweet from crypto analyst and pseudonymous Twitter user ‘Techdev’, who posted the following chart providing analysis of the “impulses and corrections over the cycles’ bull markets based on new address trends on-chain.”
Number of new Bitcoin addresses and impulse waves. Source: Twitter
Compared to the previous impulse waves outlined by Techdev, Bitcoin is still due for a green shaded price breakout in the current cycle before it resets and begins the next one.
Techdev said,
“At least one more upward impulse to come in my opinion before an impulsive downtrend (bear market) begins.”
The overall cryptocurrency market cap now stands at $2.02 trillion and Bitcoin’s dominance rate is 39.6%.
Source: Cointelegraph
