After plunging below $60,000, Bitcoin managed to rebound by more than 20%. Let’s analyze together the future prospects of the BTC price.
Bitcoin (BTC) Price Status
After initiating an attempt to rebound to $60,500, Bitcoin unfortunately encountered selling pressure that caused its price to plummet to $53,500. It was at this price level that BTC sales faded in favor of buyers. Indeed, after consolidating in the form of an ascending triangle below $59,000, the price of Bitcoin benefited from buyer support, propelling its price above its last peak identified around $63,800. This technical breakout suggests the possibility of a reversal of the current short-term bearish trend of Bitcoin.
At the time of writing, Bitcoin is trading around $63,000. Thus, Bitcoin seems to be undergoing a slight downward correction. However, the latest fluctuations in the parent cryptocurrency have allowed its price to return above its 200-day moving average. Although Bitcoin is still below its 50-day moving average, this is more convincing about the continuation of its medium-to-long-term trend. In terms of price momentum, it is not surprising that it has bounced back, as evidenced by the price of BTC itself as well as the oscillators. All of this undoubtedly demonstrates 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. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Zoom on derivatives (BTCUSDT)
Bitcoin perpetual open interest has increased by over 28%, with nearly $2.5 billion worth of positions added. While it has recently declined, this increase, combined with a rise in its underlying, a positive funding rate, and insignificant liquidations, demonstrates that a majority of speculators are anticipating a rise in the price of Bitcoin.
Following Bitcoin's rally over the weekend, it can be noted that CME Bitcoin contracts have left behind a bullish gap.
A bullish gap occurs when the price of a financial asset opens at a level well above its previous closing price, creating an empty space on the price chart. This phenomenon often indicates strong buying pressure and can foreshadow an imminent bullish move.
The liquidation heatmap of the past few months indicates that BTC/USDT has come into contact with the liquidation zone around $65,000. It appears that the cryptocurrency has attracted selling interest, with its price being revised downwards rapidly. Currently, the most significant liquidation zones in recent months are on either side of Bitcoin’s price. Above the current price, we can see the $67,500 zone. However, the most obvious one is further away, located between $72,000 and $73,000. Below the current price, we can see the subtle zone around $56,000 – $57,000. 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.
Bitcoin (BTC) Price Hypotheses
- As long as the Bitcoin price manages to hold above $61,000, we can anticipate a breakout of $64,000 – $65,000. The next resistance to consider, if the bullish movement continues, would be the $67,500 area. Further up, we can highlight $69,500. At this point, this would represent an increase of around 11%.
- If Bitcoin price fails to hold above $61,000, we could see support from buying interest around $60,000. The next level to consider, if the bearish move continues, would be the value area just below $58,000. Further down, we can put $54,000. At this point, this would represent a decline of close to 14%.
Conclusion
Despite initial selling pressure, Bitcoin has found significant support that has allowed its price to recover. Although undergoing a slight correction, Bitcoin is showing positive signs of recovery, strengthening investors’ confidence in its future prospects. However, it will be essential to closely monitor the price reaction at various key levels to validate or invalidate current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.
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