Despite earlier estimates, the recent lacklustre activity from the world’s most influential cryptocurrency has pushed analysts to rethink their targets for the coin putting it now nearer to $3700.
How The Drift Changes Bitcoin’s Price Target
Bitcoin was thought to have made a jump to at least $4000 due to the high volume and upward push out of the wedge late last week. Despite appearances, however, BTC held its ground, remaining relatively steady over the course of the past week at nearly $3600.
The response to the wedge breakout was so uneventful that even when poised for a bullish run, the highest prices immediately following the break never touched the previous highs of $3700. The new price threshold to send BTC into a bull run is now sitting slightly higher at just above the $3700 mark.
There is still hope for an even higher target to be set, but there are a couple of things that would need to happen if a higher price point were to come into action. First and foremost, the current barrier of $3700 must be broken. If that is achieved, confidence will likely be renewed afresh and a rally for a much more aggressive bull run could be in the works.
That said, the situation could easily go the other direction, too. If the current neutrality continues, bears could feel inclined to take the price back down to around $3400.
A look at the 3-day chart
The 3-day BITSTAMP chart reveals the Feb. 8 bullish outside reversal candle that succeeded in overtaking all other activities of the three days directly preceding Feb. 8. Based on that information, many analysts expected to see further bullish action, but as we have seen the situation turned out to be rather flat. In order for the analysts’ predictions to become a reality, a strong push past the $3711 mark will have to occur.
If such a push does happen, as mentioned earlier on, we will likely see a short-lived bullish trend pushing prices above $4000.
A look at the 4-hour cart
Evidence from the 4-hour chart suggests that prices must break out of their current slump in order to achieve the high gains analysts were expecting. The story is very similar to that told by the 3-day chart, but here it is from a slightly different perspective.
There is currently a wedge breakout which puts prices in good standing should it succeed, but if it does not, it’ll likely fall below the acceptance barrier of $3530 which would further dampen the mood.
Currently, prices for BTC could go either way, but the market is set for a surge so long as investors make it happen.
While early signs of a breakout of the previous losses in value began to show themselves on Feb. 8, too much inactivity and indecision led to a bit of a stalemate on the charts. There is still a chance for the value to go up, but an almost equal opportunity for a loss, as well.
Should the bullish trend that analysts were hoping to come into being, the price of $3700 will have to be attained first. Should that value not be achieved, the most likely scenario is that a drop to as low as $3400 is likely.