After an attempted bullish recovery, Bitcoin suffered a 12% correction. Let’s take a look at the future outlook for the BTC price together.
Bitcoin (BTC) Price Status
After falling significantly due to fears of a recession in the United States, Bitcoin bottomed at $49,200. From there, the cryptocurrency rebounded by nearly 28%, reaching a high of $62,800. Bitcoin then began a consolidation phase, trading in a range roughly between $56,000 and $62,800, before setting a new high of $65,000. Unfortunately, demand was not strong enough to keep the price there.
At the time of writing, the Bitcoin price is trading around $59,100. Bitcoin's last impulse has been sucked out. However, after reaching the $57,700 support, the cryptocurrency has demonstrated buying interest, confirming the interest on this support level. Thus, the short-term structure of BTC seems to remain bullish. However, as promising as it may seem, the medium-long term trend of the cryptocurrency remains uncertain. Indeed, Bitcoin has fallen back below its 50-day and 200-day moving averages, as well as its POC (Point of Control) taken into account since its last low point around $49,000. Nevertheless, we can be reassured by the fact that the crypto seems to maintain its growing momentum, as evidenced by its oscillators.
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)
The latest Bitcoin drop was accompanied by a decrease in open interest in BTC/USDT perpetual contracts. Given the gradual decline in CVD and funding rates at the same time, it can be deduced that the selling interest was dominated by speculators. Liquidations show significant long positions, suggesting a capitulation by buyers following this drop. Currently, we are seeing a stagnation in open interest, indicating a balance between buyers and sellers. However, it can be noted that CVD and funding rates seem to be recovering slightly, which could indicate that buyers seem to be regaining control.
The liquidation heatmap over the past three months shows that BTC/USDT recently came into contact with the liquidation zone below the $57,700 support. Given Bitcoin’s reaction, it appears that buying interest has emerged. While this is positive, it is worth noting that this liquidation zone extends all the way to $55,800. Below this level, we can see the $54,500 area. Above the current price, we can see the area just below $66,000, and just above, the area just above $67,000. That said, the most pronounced areas are above $70,000. 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 Prediction
- If the Bitcoin price remains above the $57,700we could anticipate an attack on the $61,200. The next resistance to consider would then be around the $62,700 or even higher, that of $65,000. If the upward movement continues, we could consider a continuation until $66,000 and beyond. At this point, that would represent an increase close to 12%.
- If the Bitcoin price fails to hold above the $57,700we could consider a return around the $56,200The next support to consider, if the bearish movement continues, would be between $55,000 And $54,000. Below, we can note the support of the $49,200At this point, that would represent a drop of about 17%.
Conclusion
Although Bitcoin is showing signs of recovery in the short term, its medium and long term evolution remains uncertain. Despite recent consolidation and indicators suggesting positive momentum, the ability to maintain this trend remains fragile. It will therefore be essential to closely monitor the price reaction to key levels to validate or revise current forecasts. 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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