The queen of cryptos remains in a phase of indecision around the psychological level of $30,000. The long-term trend is bullish, but a correction is still possible in the short term. Here is this week’s outlook for bitcoin (BTC).
Bitcoin (BTC), in a phase of indecision on a critical level
The crypto leader by market capitalization closed last week up 7.6%. It came close to $31,000 on Friday, its highest level since July 2022. This bull run died down over the weekend, and bitcoin (BTC) is back to the critical $30,000 level. Will this phase of indecision precede further upside or a correction? For the moment, we cannot observe any breakout of the bullish structure. Thus, one could envisage further upside for BTC.
Then, the situation of bitcoin (BTC) miners should not be overlooked. Indeed, these miners are currently under pressure while the mining difficulty is at an ATH level. Then, the current value of the “Diffilulty-Adjusted Puell Multiple” of Glassnode is currently 0.88 according to this analysis on Twitter. This means that currently miners are not profitable with the price of BTC at $30,000. So they need more price upside before they sell their mined BTC, in order to cover the mining costs and be profitable. Thus, the long-term direction of bitcoin (BTC) remains bullish.
What to expect ?
In the long term, it is entirely possible that bitcoin (BTC) will reach the next hurdle at $40,000. Moreover, there has not yet been a break in the short-term structure. Thus, we could envisage further upside this week. Last week’s 50% level could be an interesting entry point for a long position. However, it will be necessary to remain cautious with the price target, as a correction could set in while BTC is currently overbought.
If the price breaks last week’s low at $28,163, we could expect a wave of correction below $26,556. At the moment, bitcoin (BTC) is stagnating around the critical $30,000 hurdle.
Admission: $26,264;
Stop: $28,163;
Goal 1: $32,000;
Goal 2: $40,000.
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