After plunging below $60,000, Bitcoin managed to recover by more than 20%. Let’s analyze together the future prospects of BTC’s price.
Bitcoin (BTC) Price Situation
After initiating a pullback attempt from $60,500, Bitcoin unfortunately faced selling pressure that sent its price down to $53,500. It is at this price level that BTC sales have declined in favor of buyers. Indeed, after consolidating in the form of an ascending triangle below $59,000, Bitcoin’s price took advantage of buyer support, propelling its price above its last identified peak around $63,800. This technical breakout indicates the possibility of a trend reversal from Bitcoin’s short-term downtrend currently underway.
At the time of writing, the Bitcoin price is trading around $63,000. So Bitcoin seems to be undergoing a slight downward correction. Nevertheless, the recent fluctuations of the primary cryptocurrency have allowed its price to return above its 200-day moving average. Although Bitcoin remains below its 50-day moving average, it is more convincing regarding the continuation of its medium to long-term trend. On the price momentum side, it is not surprising that it has recovered as indicated by the BTC price itself and the oscillators. All of these elements undeniably show significant new buying interest, making investors optimistic about the future of the cryptocurrency’s price.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of active real estate traders since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Focus on Derivatives (BTCUSDT)
Bitcoin perpetual contract open interest increased by more than 28%, adding positions equivalent to nearly $2.5 billion. Although it has decreased recently, this increase, together with an increase in its underlying asset, a positive funding rate and insignificant liquidations, indicate that a majority of speculators expect an increase in Bitcoin’s price.
After the rise of Bitcoin this weekend, it can be noted that Bitcoin CME contracts have left a bullish gap.
A bullish gap occurs when the price of a financial asset opens at a level significantly higher than its previous closing price, creating a gap on the price chart. This phenomenon often indicates strong buying pressure and may indicate an impending upward movement.
The liquidation heatmap of the past months indicates that BTC / USDT has come into contact with the liquidation zone around $65,000. The cryptocurrency appears to have sparked selling interest as its price has been rapidly revised downwards. Currently, the major liquidation zones of recent months are located on either side of Bitcoin’s price. Above the current price we can notice the zone around $67,500. However, the most obvious one is further away, located between $72,000 and $73,000. Under the current price, we can note the subtle zone around $56,000 – $57,000. If the market approaches these levels, we could see a massive trigger of orders, potentially increasing the volatility of the cryptocurrency. These zones therefore represent important points of interest for investors.
Hypotheses for Bitcoin (BTC) Price
As long as Bitcoin’s price manages to stay above $61,000, we can expect the breakout of $64,000 – $65,000. The next resistance to consider, if the upward movement continues, would be the zone around $67,500. Higher up we can highlight $69,500. At this stage, this would represent an increase of around 11%. If Bitcoin’s price does not stay above $61,000, we can consider buying interest support around $60,000. The next level to consider, if the downward movement continues, would be the value zone slightly below $58,000. Lower, we can put $54,000. At this point, this would represent a decrease of almost 14%.
Closure
Despite initial selling pressure, Bitcoin found significant support that allowed its price to recover. Although undergoing a slight correction, Bitcoin is showing positive signs of recovery, bolstering investor confidence in its future prospects. However, it will be essential to closely monitor the price reaction at different key levels to validate or invalidate current hypotheses. It is also important to remain vigilant in every scenario against potential “false cutouts” and market “pinches”. Finally, let us remember that these analyzes are based solely on technical criteria and that cryptocurrency prices can also develop rapidly based on other more fundamental factors.
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Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content and support around financial markets, including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, at his side .
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While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
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