After what several sources have interpreted as an entire twelve months of consolidation, Bitcoin continues to hover around $42,000. This is precisely the price range Bitcoin was trading virtually two weeks into January 2021.

While the up and down price movement has been vital, Bitcoin stays within the range of the now-familiar price range.

The expectation of this price moment varies based on the bais. Some analysts and investors believe a new all-time high is far possible this year while others feel more consolidations will only happen this year.

Upon realizing that crypto sentiments are at their lowest ranges since past time, Cointelegraph delves deeper into what might rewrite established order in the days to come.
<h2>Will $40,000 be maintained?</h2>
Last weekend was trying for Bitcoin as its price plunges downward trying to break the $40,000 support mark.

Data obtained from TradingView and Cointelegraph Markets Professional shows that Bitcoin is hitting the $40,700 support mark on major exchanges before bouncing upward. Since then, the correction has been held.

Ironically, the $40,700 price range was also the main focus during this time last year. And after several consolidations at the price, bitcoin eventually made a vertical run to the upside.

A few months later, in September to be precise, Bitcoin fell and once again began trading within the price range. The $40,700 support mark eventually served as a turning point and Bitcoin skyrocketed to its all-time high price of $69,000 from there. However, the present bearish trend has dragged Bitcoin back to the $40,000 piece range. Now, what happens next?

A lot of analysts are having more of a bearish bias with many predicting there's a higher chance bitcoin falls to the $30,000 zone. Analysts believe the consolidation at the $42,000 price range is an indication that there's a short-term reduction for bulls.

Pentoshi, an analyst and fellow trader, predicted that the marketplace is in an excessive decrease. He believes the $40,700 support mark will eventually fall. Presently, the alluring target for most investors is the $30,000 flooring which happens laur summer.
<h2>Consensus varieties of the er dire outlook for money</h2>
This week's macro picture is quite intricate for risk assets investors and Bitcoin and other altcoin are not excluded. However, how the events would turn out greatly depends on one pundit to the next.

The USA Federal Reserve has announced it will start increasing interest rates from next month. The news hit many investors and in reaction to this news, many investors are de-risking causing a major problem for crypto bulls. The easy money which has been flowing since March, 020 will now become more difficult to come by.  This will be difficult for bulls as this translates to less money being pumped into the market.

Arthur Hayes, the x-BitMEX CEO, has summarized the bearish viewpoint in his blog post. He explained that lots of crypto investors believe that user growth fundamentals will continue to push crypto assets in upward momentum. He added that that is a flawed assessment. He believes real real-lifting such as the effect of an increase in interest rate can cause the bitcoin I further plummet.
<h2>RSI hits two-year lows</h2>
Amid the bearish trend and the market gloom, not all things signify a prolonged bearish movement for Bitcoin. Cointelegraph is now reporting that several technical tools are now pointing towards an upside movement. Usually, historical context helps to analyze these calls.

Bitcoin's RSI (relative power index) had indicated that the digital coin had reached its lowest ranges in two years. The RSI is used by traders as a traders' metric to discover if the asset is oversold or overbought at a given price range. Visit here if you want to trade bitcoin at <a href="https://bitcoin-code.live/" target="_blank" rel="noopener">Bitcoin Code</a>.

With <a href="https://www.cryptoknowmics.com/news/bitcoin-should-bottom-around-40k-says-mike-novogratz/">Bitcoin below $42,000</a>, the RSI has indicated an oversold situation with the market taking the fall as too excessive. As a result, a rebound should happen soon to balance the market liquidity.

Let's compare the present situation against last year's January. RSI indicated a passively overbought condition while Bitcoin traded within the same price range.

Presently, bitcoin's RSI in two years is at the bottom level on the daily time frame. May 2021, and March 2020 we're the last bottom level. During conditions like this, people flip bullish and long bitcoin all the way.

Most Bullish Macro Backdrop in 75 Years — 5 Things to Watch in Bitcoin this Week

As a keen observer of every latest development in the crypto world, Guest has formed a sound understanding of how the blockchain and cryptocurrency works. Guest likes to keep a tab on all the trends within the crypto industry and treats our readers with insightful content.

Most Bullish Macro Backdrop in 75 Years — 5 Things to Watch in Bitcoin this Week

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