Bitcoin has recorded a performance of almost 20% since its recovery at $60,000. Let’s analyze together the future prospects of the BTC price.
Situation of Bitcoin (BTC) Price
Bitcoin has shown signs of renewed interest from buyers since $57,000. It was then around $60,000 that the leading cryptocurrency confirmed this interest by surpassing the resistance levels identified in the May 15 analysis one by one. The $64,000 – $65,000 zone was only overcome before reaching the $67,000 – $68,000 area. Finally, this buying momentum continued until the $71,000 resistance was tested. However, it appears that the buyers’ interest at this level has not been sustained.
Indeed, at the time of writing this text, the Bitcoin price is stabilizing within a price range around $69,500. So the cryptocurrency seems to be in a small period of indecision. Nevertheless, the latest bullish swings have surpassed the 50-day moving averages. Additionally, it is not surprising that Bitcoin’s momentum has resumed, as evidenced by the oscillators and the BTC price itself. So it seems that all these elements can make us more confident about the continuation of the bullish trend.
The current technical analysis was carried out in collaboration with Elie FT, passionate cryptocurrency investor and trader. Today he is a trainer at Family Trading, a community of thousands of own traders active since 2017. You will find Lives, educational content and support around the financial markets in a professional and warm atmosphere.
Focus on Derivatives (BTCUSDT)
The open interest of Bitcoin perpetual contracts increased in the same direction as its price. This usually demonstrates speculators’ predominantly buying conviction. This hypothesis can be confirmed by a recovery in the funding rate, which reflects a price gap between BTCUSDT contracts and their underlying, probably due to increased bullish pressure on them. In terms of liquidations, we can observe a capitulation of sellers through significant short position liquidations.
The liquidation heatmap of the past three months indicates that BTC/USDT has crossed two notable liquidation zones. First the $67,000 zone, then the $71,000 zone. Reaching this last level caused a drop in its price, which is an indication of selling interest. Currently, the closest liquidation zone to the current BTC price is within a range of $72,000 to $74,500. Below we can also note the zone between $65,000 and $66,000. 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 $65,000, we can expect to break $71,000. The next resistance to consider, if the bullish move continues, will be within a price range around $73,000. Higher, we can highlight Bitcoin’s ATH just below $74,000. At this stage, this would represent an increase equivalent to 6%. If Bitcoin’s price does not stay above $65,000, we can consider support from buyers’ interest at $63,000. The next level to consider, if the bearish movement continues, would be around $61,000. Lower, we can note the psychological threshold of $60,000. At this point, this would represent a drop close to -14%.
Closure
Bitcoin has recently shown significant renewed interest, breaking through several key resistance levels. Despite a current phase of indecision, investor confidence persists, supporting the expectation of a continuation of the cryptocurrency’s trend. However, it will be crucial to closely observe price reactions at various key levels to confirm or disprove current hypotheses. It is also important to remain vigilant in every scenario against potential “false outs” and market “pinches”. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also develop rapidly due to other more fundamental factors.
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Family Trading is a community of own-account traders active since 2017 that offers lives, educational content and mutual assistance around the financial markets, including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.
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Disclaimer for Uncirculars, with a Touch of Personality:
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.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
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