After steady gains over the past few days, the value of Bitcoin (BTC) appears to be consolidating above $60,000, a level that also serves as support. However, uncertainty remains over Bitcoin's future direction as the asset failed to maintain its value above $64,000 after briefly touching it.
Looking ahead, crypto analyst Ali Martinez has presented a scenario that could see Bitcoin fall and find potential support near the $50,000 zone.
In a post on
According to the analyst, if Bitcoin stays above $61,000, it could pave the way for a rise towards $65,900. However, caution is advised during a downward movement. If Bitcoin falls below established support, it could trigger a correction that could potentially see the digital asset fall as low as $51,500.
“Should BTC fall below support, a correction could see it drop to $56,970 or even $51,500,” he said.
Bitcoin realized price distribution chart. Source: Ali_charts.
In fact, the significant transaction volume for BTC has come amid growing demand for spot Bitcoin exchange-traded funds (ETF), with a peak volume of $73.91 billion on March 1. In the long term, this product is considered a bullish catalyst.
What's next for Bitcoin?
The focus remains primarily on Bitcoin's potential to reach another all-time high, supported by catalysts such as the upcoming halving. While $100,000 is the next possible target in 2024, Finbold reported that some analysts believe that the halving alone may not be the only key.
In this regard, crypto trading expert Gareth Soloway pointed out that the likelihood of Bitcoin reaching $100,000 is likely to be increased by increasing liquidity in the market. However, he emphasized that Bitcoin remains vulnerable to further corrections despite a positive long-term outlook.
Bitcoin price analysis
At press time, Bitcoin was trading at $62,634, having gained nearly 1.5% in the past 24 hours. In the last seven days, Bitcoin is up almost 20%.
Bitcoin seven-day price chart. Source: Finbold
Although the analyst may suspect a bearish outlook, Bitcoin's technical indicators are dominated by bullish sentiments. For example, a summary of one-day readings retrieved from TradingView suggests “buy” sentiment at 16, while moving averages indicate “strong buy” at 13. Oscillators recommend a “neutral” stance at 8.
Bitcoin technical analysis. Source: TradingView
Although Bitcoin has shown bullish sentiment recently, it remains at risk of losing the $61,000 support. This risk is heightened when factors such as increased whale selling come into play.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.