Bitcoin reached $35,000, marking a new high point since May 2022. Let’s take a look at the future prospects for the BTC price.
Status of Bitcoin (BTC)
After breaking through the $28,000 resistance, the price of Bitcoin began a bullish rally. Indeed, Bitcoin marked a new annual record, reaching $35,000. Thus, BTC looks like it wants to break through the resistance around $31-32K. This is intended to be encouraging for a continuation of the upward trend that Bitcoin has taken since the start of 2023. From a chartist point of view, the price of BTC forms a double bottom which aims to once again support a scenario bullish. Bitcoin price is now well above the 50 and 200 day moving averages. The latter both lean towards the north. This supports the bullish structure of Bitcoin. On the oscillator side, they demonstrate clearly bullish momentum. However, we can see that the RSI is in the overbought zone. This suggests that BTC is likely to undergo a downward correction or consolidation in the near term. This scenario appears to have started after coming into contact with the Bitcoin Futures Bearish Gap.
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)
The latest bullish movements in Bitcoin have led to a decline in open interest. According to the Coinalyze analysis platform, almost 1.3 billion of positions (Long/Short) were closed. Liquidations of short positions were higher than long ones. They are evaluated around 60 million of dollars. Thus, this situation demonstrates that bitcoin has recently faced a dominant buying force.
When viewing the Bitcoin Liquidity Map, we can see that it has reached a significant liquidation zone. This which was understood around the $33,000 – $35,000. This indicates that many traders or investors have buy or sell orders at these price levels. Thus, this encourages the scenario of a downward correction or consolidation in the short term from this level.
Hypotheses for the price of Bitcoin (BTC)
If the price of Bitcoin manages to stay above $32,000we could anticipate a bullish continuation up to the level of $40,000. The next resistance to take into account, if the upward movement continues, would be the $42,000. At this stage, this would represent an increase close to +23%.
If the price of Bitcoin fails to stay above $32,000we could consider a return to $31,000.The next level to take into account, if the bearish movement continues, would be around the $30,000. At this stage, this would represent a drop close to – 11%.
Conclusion
Bitcoin has entered a bullish phase, breaking all resistance in its path. From a technical point of view, today, everything suggests that this movement should continue. However, a consolidation or corrective phase following such a period of volatility should not be neglected. 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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