As a seasoned analyst with over two decades of market experience under my belt, I’ve seen more than a few rollercoasters in the world of finance. The recent Bitcoin price action is reminiscent of a wild ride on Coney Island’s Cyclone – up one minute, down the next.
Contrary to a rise in US Consumer Price Index, Bitcoin plunged approximately 4% on Thursday. Yet, this swift decline seems to be reversing as Bitcoin surged by about 3.68% over the past 12 hours. However, some traders warn that Bitcoin’s short-term instability might cause its price to fall even further, possibly dropping below $60,000.
Technical Analysis Suggests Bitcoin Price to Break Below $60,000
Glancing at Bitcoin’s day-to-day graph shows us that its value continues to follow a descending trend, marked by lower peaks and troughs. However, the latest fluctuations have produced a higher peak, which slightly boosts the likelihood of an upward trend, although it’s still not very likely.
For the uptrend in BTC to be validated, it needs to maintain its position above $60,000 and break through the resistance between $65,000 and $66,000. At present, there’s no indication that Bitcoin will manage this feat, but if it does, investors anticipate a return to prices around $70,000 or even higher.
Traders Forecast BTC to Revisit $53,000
Adrian Zduńczyk, a recognized market analyst, recently shared with his 673,000 followers on platform X that he predicts Bitcoin will reach approximately $53,000 in the future.
As a researcher delving into the realm of cryptocurrencies, I find myself aligning with the perspective expressed by Ki Young Ju, the visionary founder and CEO of Crypto Quant. Much like Zduńczyk, he suggests that the critical support level for Bitcoin lies around $53,000. This insightful observation underscores the importance of monitoring this significant figure in our ongoing analysis.
Based on the statement from CryptoQuant CEO, it appears that there were significant price disparities between buying and selling of large amounts of cryptocurrency (referred to as “whales”) at approximately $53K and $72K on Coinbase. At $72K, these whales were buying, while at $53K they were selling. Furthermore, large whale transactions on global exchanges prevented a new all-time high (ATH) and fortified the $53K level.
He adds that the “near-zero premium may act as support/resistance.”
BTC Price Forecasts $53,000 Retest Likely If This Happens
Looking at the four-hour BTC chart, we can see that the $60,000 psychological level plays a crucial role in shaping the near-term trend. If this significant resistance holds, Bitcoin’s price may surge further; however, if it breaches, we might see a return to the $53,000 support level.
Previously, we noted in an article from CoinGape that Bitcoin experienced a drop of 9% after encountering resistance at the $63,987 to $65,044 range, falling towards the crucial support level of $60,000. If the price of Bitcoin can successfully flip the $61,837 resistance into a support level, it could continue its upward trend. Yet, given that the four-hour Relative Strength Index (RSI) remains below the 50 mean line, it’s more probable that the bearish momentum will prevail, as this suggests a dominance of downward pressure.
Furthermore, the daily Relative Strength Index (RSI) has now surpassed its usual average value, suggesting that the current momentum might be slowing down and the bears could potentially regain control before the bulls re-emerge.
According to the technical indicators we’re looking at, it seems that Bitcoin might struggle to maintain its price above $60,000. If this trend continues, a crucial support level can be found between $57,201 and $57,970. This region could serve as a temporary stopgap, but only if investors who have been on the sidelines decide to jump in. Without a significant increase in buying pressure, Bitcoin could potentially slide back down to around $53,191.
If Bitcoin maintains its support at $60,000, it’s plausible that we might see a return to the range of $65,000 to $66,000 in future price predictions.
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2024-10-11 14:36