Bitcoin Traders Eye $30K–$34K Price Zone Amid Bearish BTC Charts

On January 23, there was a decline in the total market capitalization of the cryptocurrency market. The global market value dropped from $1.6 trillion to $1.5 trillion, representing a 5.5% decrease in one day. This decline was primarily driven by a sell-off in the market. The trading volumes, however, increased by 55%. The price of Bitcoin also experienced a drop below $40,000, trading at $38,521 on that day. As a result, most altcoins, including Ether and Solana, followed the downward trend set by Bitcoin. Binance Coin also lost a key support level at $300.

Several analysts have turned bearish on Bitcoin, suggesting that the recent price action indicates a potential end to the bull market. Veteran trader Bob Loukas believes that Bitcoin has reached its peak based on the weekly cycle chart. Another trader, Peter Brandt, noticed that Bitcoin’s price fell below $40,000 and identified a bearish breakout. According to his analysis, the price target for bears is around the $34,700 zone. Bitfinex predicts a short-term target of $38,000 – $36,000 and a long-term target of $32,000 before the halving event.

Despite this correction, some analysts remain optimistic about Bitcoin’s future. Jurrien Timmer, director of Global Macro at Fidelity Investments, believes that the size and growth of Bitcoin’s network drive its price. He presented a chart showing the network growing in line with a standard power regression curve, suggesting that Bitcoin’s network is on track and that the price will continue to rise. Independent analyst Ali also shares this positive outlook, highlighting a historical sentiment cycle where Bitcoin experiences a brief period of anxiety followed by a price correction and then a recovery in the uptrend. Ali suggests that the ongoing correction may be a temporary setback due to market anxiety and that a recovery could occur in the short term.