Bitcoins and the entire cryptocurrency market have seen a slump in recent times, with Bitcoin failing to touch its previous peak prices. The unpredictability of Bitcoin’s price is causing unease among investors, more so as the much-anticipated Bitcoin halving event approaches on April 20, 2024. This event, which affects supply and demand dynamics, introduces a level of uncertainty into the market. Amidst this tumultuous backdrop, analysts and investors are keeping a close eye on significant technical markers to forecast Bitcoin’s future trend, potentially leading to targets of $50,000 or $70,000.
Market Performance of Bitcoin Price
In the past day, Bitcoin’s price experienced a modest rise of 0.67%, reaching $62,913.33. However, this brief gain paints a different picture compared to the past week and month’s trends, which have shown a less favorable direction.
Over the last week, the value of the cryptocurrency dropped by 8.79%. Additionally, within the past month, its value has dipped and caused a loss of 6.21%. This persistent decline could leave investors concerned about the potential decrease in value of their holdings.
In spite of facing some recent hurdles, Bitcoin remains the leading cryptocurrency with a market value of around $37.05 billion as per CoinMarketCap. This represents an impressive gain of 18.17% in just the last day. The relatively low volume-to-market-cap ratio of 3.01% indicates fewer transactions, but the market remains bustling with activity.
The price of Bitcoin reached an all-time high of $73,750.07 around a month ago, on March 14, 2024. Since then, there has been a decline of approximately 14.7%, causing the coin’s price to drop. This volatility may lead investors to exercise caution while navigating the market.
Bitcoin Short Squeeze Likely Near $72,000; Support at $60,000
Some experts note that when Bitcoin’s price drops beyond certain levels, it indicates weakness in the market’s structure. They explain that the majority of trading activity takes place around the $60,000 mark, and there is little support beneath this point. The idea of Bitcoin reaching $40,000 is considered unlikely because of the insufficient liquidity. Instead, they focus on the potential for a short squeeze if the price rises towards $72,000.
In terms similar to the bullish market of last year in September, we are currently experiencing a comparable phase. There’s a possibility that we may be on the brink of a potentially unfavorable turnaround before June. However, optimistic forecasts suggest that there is still potential for further growth in the coming months. If the price drops below $60,000, it could lead to a decline towards $54,000 to $58,000, with a long-term target of $50,000.
Bitcoin Price Forecast
According to the technical analysis info given, Bitcoin’s (BTC) future perspective is ambiguous as price fluctuations could be influenced by notable support and resistance points. Key elements to focus on include moving averages, oscillators, and the MACD (Moving Average Convergence Divergence) indicator.
The moving averages with shorter timeframes (10, 20, 30 periods) suggest that Bitcoin is currently following a downward trend as it trades under both the exponential and simple averages within this range. On the contrary, the longer moving averages (100 and 200 periods) paint an optimistic picture since Bitcoin’s price stays above these averages. This implies the potential for a continuous rise in its value in the upcoming timeframe.
In simpler terms, the RSI of Bitcoin Token (BTC) is at a balanced level, neither suggesting it’s underpriced (oversold) nor overpriced (overbought). Consequently, its recent price fluctuations might not indicate a clear upward or downward trend.
In simpler terms, when the MACD indicator is showing a sell signal, it might mean that the downward trend in the market will persist.
If the cost of Bitcoin falls, it may encounter solid backing at $53,650 and $62,599. These levels could serve as foundations, allowing Bitcoin to bounce back from any slumps.
On the positive note, if Bitcoin’s price rises, it may encounter resistance at $73,662 and $77,080, potentially limiting its upward momentum.
According to present technical signals, Bitcoin’s future price direction is ambiguous. It may indicate a downward trend over an extended period while showing signs of an uptrend in the near term.
Should Bitcoin experience a downturn in the near future, it’s possible that its price may fall to approximately $50,218. This figure represents the support level of the 200-day moving average. Subsequently, a further decline towards $50,000 could ensue.
In other words, if Bitcoin (BTC) manages to hold on to crucial support points like the Fibonacci level at $62,599 and regain lost resistance zones, it could lead to a surge in price towards $70,000, reinforcing its upward trend over the longer term.
Conclusion
Despite the ambiguity of Bitcoin’s present signals, there’s a potential for an uptrend following the halving event. The price action of BTC will be influenced by its encounters with crucial support and resistance lines during market fluctuations. Keep a keen eye on technical signals and broader economic conditions to ascertain whether Bitcoin may hit $50,000 or $70,000 in the future.
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2024-04-17 20:08