Here's Why Analysts Expect 'Choppy' Bitcoin Price Action Between $ 42,000 and $ 53,000

The larger cryptocurrency ecosystem is in a heightened state of fear on December 6 after the December 3 market liquidation continues to s...

The larger cryptocurrency ecosystem is in a heightened state of fear on December 6 after the December 3 market liquidation continues to send ripples across the sector and Bitcoin (BTC) the price remains pinned below $ 50,000.

Data Cointelegraph Markets Pro and TradingView shows bulls manage to keep BTC price above $ 49,000, but general outlook suggests more days of consolidation are in store.

4 hour BTC / USDT chart. Source: TradingView

Here’s a look at what analysts are saying on what to expect from the BTC price in the coming weeks.

Strong support in the bottom $ 40,000

An overview of the weekly Bitcoin price development was provided by market analyst and Twitter pseudonym “Rekt Capital” who job the following chart highlighting the main areas of support and resistance that traders should watch out for.

1 week BTC / USD chart. Source: Twitter

Rekt Capital said,

“BTC Weekly closed above the small red area from which BTC previously rebounded. BTC threatens to lose that area but no outages confirmed. Just below this area is the orange area, an area of ​​high demand which ended two corrections of -25% in February and September.

Short-term payback at $ 52,000

Traders looking to avoid price swings in the days ahead would be wise to sit on the sidelines and wait for the market to digest this latest pullback, according to analyst and Twitter pseudonym “Pentoshi,” who posted the following chart suggesting a short term rally in BTC price to $ 52,000.

1 day BTC / USD chart. Source: Twitter

While the analyst forecasts a possible longer-term rally, Pentoshi warned that the market could be choppy in the near term and traders could find a better entry point if they remain patient.

Pentoshi said,

“I can see short term BTC trading coming back to $ 52,000, but I think if you wait a few days / week you will avoid the choppy water. Buy low to medium $ 40,000. Don’t get caught up. I don’t see any reason to take new atm longs here. I will wait for a new job to come to me.

Related: Bitcoin could ‘drive people crazy’ for months with $ 53,000 BTC price cap – analyst

Expect a “cut” between $ 42,000 and $ 53,000

A final snapshot was offered by independent market analyst Scott Melker, who posted the following tweet outlining the price points traders need to watch closely.

As seen in the tweet above, Melker identified the range between $ 42,000 and $ 53,000 as the choppy zone that will drive traders crazy, while a break above that zone is a positive sign for Bulls. According to Melker, prices below $ 42,000 will indicate that bears have the upper hand in dictating the price of BTC for the foreseeable future.

The overall cryptocurrency market capitalization now stands at $ 2.285 trillion and Bitcoin’s dominance rate is 40.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move comes with risk, you should do your own research before making a decision.