While Bitcoin experienced a sharp decline on the first Monday of the month, it managed to rebound by more than 27% in the following days. Let’s analyze together the future prospects of the BTC price.
Bitcoin (BTC) Price Situation
After a significant decline due to fears of a recession in the United States, Bitcoin reached a low of $49,200. It is important to note that this price level corresponded to an area of interest confirmed by an area of significant value. Since then, the leading cryptocurrency has regained strength, jumping by almost 28%. Bitcoin thus crossed the psychological threshold of $60,000 and reached a high of $62,800. Unfortunately, this bullish momentum began to weaken from this last level, which now acts as resistance.
At the time of writing, the Bitcoin price is trading around $59,500. While the short-term structure seems to be turning bullish again, the medium-long term trend of the cryptocurrency remains uncertain. Indeed, although BTC has moved back above its annual and monthly VWAP, it remains below its 50-day and 200-day moving averages, which recently formed a “death cross”. In terms of momentum, the cryptocurrency still appears weak despite a small rebound last week. This is reflected in the price of BTC itself as well as in the oscillators. Naturally, all of these elements continue to sow doubt in the cryptocurrency market.
The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today, he is a trainer at Family businessa community of thousands of active proprietary traders since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Bitcoin (BTC) Price Hypotheses
- If the Bitcoin price stays above $54,500, we could expect to reach $62,800 or even $63,000. The next resistance to consider would then be around $65,600 or even $67,000. If the bullish movement continues, we could expect the movement to continue to $70,000 or even $72,000. At this point, this would represent an increase of almost 21%.
- If Bitcoin price fails to hold above $54,500, we could be looking at a return to around $53,400. The next support to consider, if the bearish move continues, would be between $49,200. Further down, we can note the support between $48,300 and $47,000. At this point, this would represent a decline of around 20%.
Conclusion
Although Bitcoin has recovered from a significant drop, its momentum remains fragile and the medium- to long-term trend remains uncertain. Despite some positive signals, doubts persist about BTC’s ability to maintain a sustained upward movement, fueling uncertainty in the cryptocurrency market. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or deny current assumptions. It is also important to remain vigilant against possible “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also change rapidly depending on other more fundamental factors.
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Family Trading is a community of self-employed traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including cryptocurrencies with Elie FT at its side, investor and passionate trader on the crypto market.
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