After reaching a remarkable historic level above $93,400, Bitcoin is entering a consolidation phase. Now let's look at the development prospects for BTC.
Bitcoin (BTC) price situation
After two consecutive weeks of increase, following the presidential elections, Bitcoin reached a new ATH at $93,433. After a slight correction, it begins a consolidation phase in the form of an ascending triangle. This is located just below the third resistance of the pivot points. In the short term, we observe that the cryptocurrency is having difficulty crossing the resistance of $91,800. However, its price is seeing higher and higher highs, indicating continued demand. Note that its lowest point is around $85,000. This entire figure creates an area of notable volume, thus constituting a key area to preserve.
At the time of writing, the price of Bitcoin has just tested $91,500. Despite this pause, the cryptocurrency remains in an uptrend in the short, medium and long term. However, it is worth noting that the crypto has undergone a larger movement. This demonstrates strong bullish momentum for Bitcoin, observable both in its oscillators and in its price. While this dynamic is positive, it is important to remember that such a strong move could be followed by a significant correction.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at FamiLyTradinga 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 open interest of BTC/USDT perpetual contracts has stabilized, like its underlying. This indicates a pause in speculative interest. On the CVD side, we observe a downward trend, which reflects a majority of short positions on the market. Nevertheless, funding rates show that perpetual contracts remain mostly purchased, being positive. As for liquidations, they are not really significant. This may reflect careful position management by traders or a lack of sufficient volatility to cause massive liquidations.
The heat map of BTC/USDT perpetual contract liquidations highlights areas of significant value on either side of its current price. Above this, we can note a notable area around $93,000. Below that, a more subtle zone lies just below $90,000. More visible and extensive, the zone between $95,000 and $96,000 is particularly striking. Lower still, an area around $80,000 is notable, although the largest is around $75,000. If the price approaches these levels, it could trigger a large number of orders, increasing the risk of volatility for the cryptocurrency. These areas therefore constitute a crucial point of interest for investors.
Bitcoin (BTC) price forecasts
- If the price of Bitcoin manages to stay above $85,000, a break of the resistance at $91,800 could occur. In this case, a continuation of the bullish movement would make it possible to reach the threshold of $93,400, opening the way to a new ATH. The latter could be located around the first resistance of the pivot points, identified at $95,437, corresponding to an increase of around 4.5%.
It is important to note that hitting an all-time high makes it more difficult to identify resistance levels.
- If Bitcoin fails to sustain above $85,000, it could find support around $81,600. A prolonged decline could then lead to support around $78,650. Finally, in the event of a more marked correction, the area between $77,000 and $76,000 constitutes a key support, the impact of which would imply a decline of around 17%.
Conclusion
Bitcoin displays sustained bullish momentum, marked by steady progress and increasing highs. Although consolidation is underway, reflecting a key area to preserve, overall momentum remains positive in the short, medium and long term. Thus, it will be essential to carefully monitor the price reaction at key levels in order to validate or adjust current forecasts. Finally, remember that these analyzes are based solely on technical criteria, and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
