Bitcoin has been hovering below $28,000 since the start of the month. Let’s take a look at the future prospects for the BTC price and the entire crypto market.
Status of Bitcoin (BTC)
While the price of Bitcoin consolidated just below $28,000 throughout the weekend, this Monday morning the queen of crypto saw this latest level rejected. Now, BTC is trading around $27,600. We can observe that this last movement took place in contact with the 200-day moving average. Furthermore, it is relevant to highlight the change in direction of the 50-day moving average. In fact, the latter is now moving upwards. This supports the short-term trend for Bitcoin to borrow. However, from a market structure point of view, it is difficult to assert a change in trend in the medium term. On the oscillator side, they demonstrate still bullish momentum, which is not yet excessive.
Elie FT, a passionate investor and trader in the cryptocurrency market, collaborated in carrying out the current technical analysis. 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)
Following the rejection of $28,000, Bitcoin’s open interest was generally revised downwards. It is interesting to observe at the same time that the price of BTC has not fallen significantly. This may indicate that sellers are unwinding their positions, which eases the selling pressure.
It’s worth looking at the Bitcoin Liquidation Heat Map, as it highlights various areas of high liquidity. The ones that particularly catch our attention are the areas around $26,800 – $27,000 and $28,000 – $28,500. As the market moves closer to these, this could trigger a large number of delayed orders, which, naturally, can increase the volatility of the cryptocurrency.
Hypotheses for the price of Bitcoin (BTC)
If the price of Bitcoin manages to stay above $28,000, we could anticipate a bullish continuation up to the $29,000 level. The next resistance to consider, if the bullish movement continues, would be $30,000. At this stage, this would represent an increase close to +9%.
If the price of Bitcoin fails to stay above $27,000, we could envisage a return to $26,500. The next level to take into account, if the bearish movement continues, would be around $26,000. At this stage, this would represent a drop close to -5%.
Conclusion
Bitcoin is in a stabilization phase just below the $28,000 resistance. The reaction of the cryptocurrency at this level is important as it can tell us whether we are dealing with a continuation of the trend or a change in structure. Thus, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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