After two consecutive weeks of growth, the price of Bitcoin is going through a consolidation phase. Let’s analyze the future prospects of the BTC price together.
Bitcoin (BTC) price situation.
Bitcoin is still mid-term between $60,000 and its all-time high near $73,500. After regaining momentum from the bottom of this range, Bitcoin regained its resistance identified around $71,000-$72,000. It was at this price level that the BTC price lost momentum and regained $67,000. In the short term, this level appears to act as a support at which Bitcoin price has entered a phase of indecision. A large part of this consolidation seems to be around $70,000. Recently, the price of BTC seems to be rejecting this level recently.
At the time of writing, Bitcoin is actually trading below $69,000. So it seems that the cryptocurrency is still going through a period of short-term indecision. However, it should be noted that the medium to long term trend remains bullish as shown by the Dow theory and the 50 and 200 day moving averages. One that is below the current price of Bitcoin and has an upward trend can confirm this observation. As for the cryptocurrency’s upward momentum, it seems to be gaining momentum again, but still remains feverish as shown by the oscillators and the price itself.
The current technical analysis was done in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, coach v Family businessa community of thousands of traders on their own account active since 2017. Here you will find lives, educational content and mutual help in the financial markets in a professional and warm atmosphere.
Focus on Derivatives (BTCUSDT)
Open interest in Bitcoin perpetual contracts moved almost in parallel with the price of the cryptocurrency, which basically demonstrates the belief of speculators focused primarily on buying. This hypothesis can be confirmed by the positive funding rate, which reflects the price gap between BTCUSDT contracts and their underlying, probably due to upward pressure. On the liquidation side, they are not significant, which indicates a market that is developing healthily.
A heatmap of liquidations over the past three months shows that BTC/USDT has crossed the two liquidation zones already announced in the May 22nd analysis. Bitcoin’s volatility has now left two new zones above and below the current price. Above we can notice the zone between $72,000 and $74,000. Below that we can notice the area between $65,000 and $67,000. If the market approaches these levels, we could see massive order triggering, potentially increasing the cryptocurrency’s volatility. These areas therefore represent the main points of interest for investors.
Bitcoin (BTC) Price Hypotheses
- As long as the Bitcoin price manages to hold above $66,000, we can expect a break of $72,000. Another resistance to consider if the bullish movement continues will be Bitcoin’s ATH below $74,000. Above we can highlight the first Fibonacci extension level identified at $78,300. At this stage, this would represent an increase equivalent to 13%.
- If the price of Bitcoin does not stay above $66,000, we could consider buying interest support at $65,000 or even $63,000. Another level to consider if the bearish movement continues will be around $60,000. At this stage, this would represent a drop of close to -13%.
Conclusion
Bitcoin has recently shown renewed interest at the bottom of its mid-term range. After regaining key resistance, BTC entered a phase of indecision that challenged this latter interest. Technically, all indications are that the rally could continue, however, the key will be to carefully monitor the price reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain alert to potential “false outs” and “market squeeze” in any scenario. Finally, let’s remember that these analyzes are based exclusively on technical criteria and that the price of cryptocurrencies can also develop rapidly depending on other more fundamental factors.
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Family Trading is a proprietary trading community active since 2017 that offers lives, educational content and mutual help in the financial markets including cryptocurrencies with Elie FT, a passionate investor and trader in the crypto market.
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