Bitcoin price up to $ 40,000 was a long-awaited situation. BTC’s 2020 returns stand at a surprising 300%, and the same can be seen in the stock price of MicroStrategy, which started Bitcoin investments in early August.

 

 

Bitcoin may not reach $ 50,000 soon

Suffice it to say that institutional investors who bought before $ 20,000 are making huge profits even now. But those who have bought over $ 30,000 and are not profitable are now hoping that BTC will not fall below the breakeven point and expect the price to return to the $ 40,000 level. However, this particular price point may not be seen again soon, according to AMBCrpyto analysts. There are several reasons for this.

After each exponential rally, the buyer’s calming down causes the price to retreat or stick to range. At this time, BTC is range dependent and lacking large volatility. At this stage, BTC will either be in bullish / bearish patterns and wait for a breakout. In the case of Bitcoin, this is interpreted as a bullish pattern.

Depending on market conditions, this could continue until mid-February or end of March.

Overall first quarter returns for Bitcoin are pretty small. Therefore, we can expect February’s returns to recover in March and BTC will return to where it started.

 

Bitcoin’s monthly returns show that BTC has a relatively normal month of January and March. However, as February is a bit more bullish, BTC could reach its local peak in February. Therefore, we can expect the same trend to continue going forward without neglecting the possibility of a decrease.

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Bitcoin price up to $ 40,000 was a long-awaited situation. BTC’s 2020 returns stand at a surprising 300%, and the same can be seen in the stock price of MicroStrategy, which started Bitcoin investments in early August.

 

The Bitcoin funding rate shows what the psychology of market participants is right now. If the funding rate is too high, the market may be volatile and similarly, a lower funding rate indicates that the market is cooling. Currently, the BTC funding rate is close to zero.

So going forward, BTC can stay bound to range with less volatility and less return. Ideally, this is where long-term hodlers stop looking at the chart and accumulate more BTC in anticipation of a surge. On the other hand, traders may want to dig deeper into ranges and accumulate more BTC. The third option is to accumulate altcoins that are starting to see good returns.

In summary, it is not impossible for Bitcoin to see $ 40,000, but it may not be possible in the first quarter of the year to reach $ 50,000.

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