After rebounding, Bitcoin went through a consolidation phase before recently surpassing its previous peak. Let’s analyze together the future prospects of the BTC price.
Bitcoin (BTC) Price Situation
After falling significantly due to fears of a recession in the United States, Bitcoin hit a low of $49,200. At this level, the cryptocurrency rebounded by almost 28%, reaching a high of $62,800. However, this bullish momentum began to fade from this level. The BTC price then entered a consolidation phase, fluctuating approximately between $56,000 and $62,800. Recently, Bitcoin broke out of this range to the upside, setting a new high of $65,000.
At the time of writing, Bitcoin is trading around $62,800. Buying interest in the cryptocurrency appears to be lacking support. While the short-term structure appears to be bullish, the medium- to long-term trend of the cryptocurrency remains uncertain. Indeed, while BTC has bounced above its 50-day and 200-day moving averages, these remain crossed downward, suggesting that this may simply be a pause. Nevertheless, we can take comfort in the fact that Bitcoin has firmly re-entered its point of control, located just below the $60,400 support. On the momentum side of the cryptocurrency, it is no surprise that it has bounced slightly. This is reflected in the price of BTC itself as well as its oscillators.
The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. He is now a trainer at Family businessa community of thousands of owner traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Focus on Derivatives (BTCUSDT)
Bitcoin’s latest fluctuations have been accompanied by an increase in open interest. This increase occurred as the CVD recovered slightly, indicating a slight outperformance of the strength of buyers relative to sellers. This suggests that speculators’ view on the future price of Bitcoin has recently become optimistic. This hypothesis is reinforced by funding rates, which have turned positive. On the liquidation side, they remain insignificant, demonstrating a relatively stable market phase.
The liquidation heatmap for the past six months shows that BTC/USDT has two major liquidation zones, located above $70,000 and $72,000. Below the current price, a small liquidation zone is observed around $60,500. Further down, subtle zones are noted at the $57,200, $56,150, and $54,500 levels. If the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These zones are therefore major points of interest for investors.
Bitcoin (BTC) Price Hypotheses
- If the Bitcoin price stays above $59,500, we could anticipate reaching $65,600. The next resistance to consider would then be around $67,000. If the bullish movement continues, we could consider a continuation towards $70,000 or even $72,000. At this point, this would represent an increase of around 15%.
- If Bitcoin price fails to hold above $59,500, we could be looking at a return to around $56,200. The next support to consider, if the downward movement continues, would be between $55,000 and $54,500. Further down, we can note the support at $49,200. At this point, this would represent a decline of around 21%.
Conclusion
Despite notable support after a sharp initial rebound, Bitcoin’s trend remains uncertain. While the recent recovery is encouraging, signs of fragility persist, suggesting that caution is warranted going forward. As such, it will be crucial to closely observe the price reaction at various key levels to confirm or refute current assumptions. It is also important to remain vigilant for potential “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also move rapidly based on other, more fundamental factors.
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Family Trading is a community of self-employed traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including cryptocurrencies with Elie FT at its side, investor and passionate trader on the crypto market.
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