While the famous Bitcoin halving took place, the parent cryptocurrency attracted buyer interest, once again maintaining its price around $60,000. Let's analyze together the future prospects for the BTC price.
Status of Bitcoin (BTC)
After facing a bearish period starting at $72,000, the price of bitcoin began a short-term downward trend, bringing its price slightly below $60,000. It is at this price level that bitcoin appears to have attracted buyer interest, which pushed its price above $67,000. This level was highlighted in the analysis of April 16, 2024. It is interesting to observe that this price corresponds to resistance, and represents the most significant value zone since that of $42,000.
At the time of writing, Bitcoin is trading around $66,150. Reaching this level seems to indicate a certain capitulation of buyers. However, it is reassuring to note that Bitcoin price has held above the $60,000 support level. Therefore, the possibility of a continuation of the upward trend remains possible. To reinforce this outlook, a return of BTC above the 50-day moving average would be favorable. Likewise, a rebound in Bitcoin momentum would be equally comforting.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
Open interest on BTC/USDT contracts decreased by over 27% before stabilizing, then increased slightly since Saturday, April 20. This latest increase was accompanied by an increase in the price of Bitcoin, with insignificant liquidations. All of this data suggests that the majority of traders have confidence in this latest movement. As for financing rates, we can observe that they oscillate between positive and negative. This indicates that BTC/USDT contracts are aligned with their underlying asset, demonstrating a balance between buyers and sellers.
The heat map of liquidations over the past month shows that BTC/USDT crossed a notable liquidation zone, between $66,000 and $67,000. It seems that a selling interest has established itself at this level, suggesting a period of reversal. Currently, the closest and most significant liquidation zone is above the current price, precisely around $72,000. To identify the significant area below, it will be necessary to explore deeper, particularly around $58,000. If the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.
Hypotheses for the price of Bitcoin (BTC)
- As long as the price of Bitcoin manages to stay above $60,000, we can anticipate a break of $67,000. The next resistance to consider, if the bullish movement continues, would be in a price range around $68,000 and $69,000. Even higher, we can note the $71,300. At this point, that would represent an increase of more than 8%.
- If the price of Bitcoin does not remain above $60,000, we could envisage support for buying interest around $58,000. The next level to consider, if the bearish movement continues, would be within a price range around $57,000 and $56,000. At this stage, this would represent a drop close to – 15%.
Conclusion
After a period of decline since a peak at $72,000, Bitcoin found renewed interest around $60,000, rising significantly above this threshold. This dynamic thus suggests a possible continuation of the upcoming upward trend. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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