Crypto Set for ‘Interesting Week’ as Major Test Approaches

Crypto prices continued to slide on Thursday, following sluggish macroeconomic conditions, rise in oil prices and tapering cues from the Federal Reserve. Rising inflation and slump in the technology market added to the woes.

Bitcoin once again slipped below the $42,000 mark but Ethereum was able to hold $3,200 levels. The trading volumes remained light during early trade as the market witnessed a sharp churn due to the changing economic environment.

Bitcoin remains stubbornly immobile at the start of the week, though some crypto analysts believe it is approaching a moment of reckoning.

The cryptocurrency shifted in price by less than 1 per cent over the weekend, remaining above the key $40,000 level but failing to see any significant momentum towards recovering the losses it suffered at the start of the year.

A long term trend will soon be tested, however, potentially determining the longer term trajectory of BTC and the broader crypto market.

Popular cryptocurrency analyst and commentator Will Clemente predicted it will be an “interesting week” for bitcoin, as a long term descending trend is tested by a short term ascending pattern.

The two converging trend lines, known as a symmetrical triangle, explains bitcoin’s recent sideways consolidation, but over the coming days we should see whether this key price support is able to overcome the resistance levels.

 

January 20, 2022