Bitcoin bounces off $40,000 – is a strong correction coming now?

  • The Bitcoin price has bounced off the $40,000 mark after a rebound from just under $30,300.
  • Experts disagree on whether the correction is already over, but all are bullish on the long term.

Bitcoin has risen in price from $41,950 to $30,300 after a strong correction and initially bounced off the $40,000 mark. Within the last 24 hours, the Bitcoin price recorded a gain of 0.08% to a price of $38,374. At the time of writing, the market capitalization is just under $712 billion.

Blockroots founder and Bitcoin trader Josh Rager elaborates that Bitcoin has been rejected along the $40,000 level and now support at the $37,000 level must hold to prevent BTC from falling further. In his opinion, the correction might not be over yet. Bitcoin needs to crack the 41,000 USD mark again for the former uptrend to continue.

Nevertheless, Rager is bullish for the long term and predicts that Bitcoin can reach a 6-digit price in early 2022. Bitcoin’s long-term fundamentals, as well as the continued rise in adoption by institutional investors, will be the catalyst behind its continued rise.

Bitcoin will soon be the talk of the town and enter the mainstream. “Il Capo Of Crypto” describes that Bitcoin could fall below the $37,000 support and he will buy the dip in the $35,000 to $36,000 price range. In the long term, he is also bullish, but in his opinion, the correction is not over yet, so Bitcoin could fall even further. Traders should be vigilant and take advantage of the current opportunity to make short-term profits.

On the Bitcoin exchange Binance, at the level of the price range between $38,200 and $38,400, there are many buy orders that seem to have prepared to buy the small dip at this level. “Byzantine General” further states that the short-term support is at $38,000 and Bitcoin could fall further to $35,000 if this support zone breaks.

Bitcoin has broken out of a triangle formation to the upside and has targeted the 40,000 USD level. Trader “Jonny Moe” states that Bitcoin will not directly draw a new all-time high in the first attempt, but he expects a correction first. Nevertheless, in his opinion, the fundamentals are still strong, so Bitcoin could reach a new all-time high in February.

According to“CRYPTO₿IRB”, Bitcoin will fall again to $34,000 as BTC was clearly rejected at the $40,000 mark on the 4-hour candle. He is allocating capital to enter the dip and profit from the further correction.

Grayscale Trust continues to be greedy for Bitcoin

As we reported earlier, Grayscale is among the largest institutional Bitcoin investors of our time. Already yesterday, the first day the Bitcoin Trust was released for trading in 2021, the company bought 2,172 BTC, 2.41 times all new Bitcoins produced in the last 48 hours. This buying frenzy shows that the demand for Bitcoin from the ranks of large investors continues to grow and thus the BTC price will benefit in the long run.

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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