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Cryptocurrency News Articles

Bitcoin Slumps Amid Market Consolidation, Raising Bearish Concerns

Apr 17, 2024 at 06:01 pm

Bitcoin (BTC) has faced a price drop below $61,000, a level that was previously supportive. The price has formed a double top pattern, which indicates a potential reversal in the short term despite the long-term bullish trend of the cryptocurrency. The key support and resistance levels for BTC are $60,000 and $67,000 respectively, and its price action within these levels will determine the continuation or reversal of the trend.

Bitcoin Slumps Amid Market Consolidation, Raising Bearish Concerns

As the cryptocurrency market experiences a period of consolidation, Bitcoin (BTC), the industry's leading asset, has witnessed a notable downward trend in its price. This decline, which began with a rejection of the $72,000 resistance level, has dragged the entire cryptocurrency market with it.

Amidst an ascending triangle consolidation pattern, selling pressure intensified at $72,000, pushing BTC's price below the psychological threshold of $61,000. This level, which had previously served as support, has once again attracted buyer interest. However, despite a temporary recovery on Tuesday, April 16th, the short-term technical outlook for Bitcoin remains bearish.

The current price action has formed a double top pattern, a bearish signal that indicates a potential reversal. Despite this short-term bearishness, the underlying trend for Bitcoin remains bullish. Nonetheless, BTC's fall below its 50-day moving average, coupled with a downward revision of bullish momentum, raises concerns about the sustainability of this trend.

In collaboration with Elie FT, an investor and trader specializing in cryptocurrency markets, we have developed several hypotheses regarding Bitcoin's future price trajectory.

Bullish Scenario:

If Bitcoin's price manages to maintain above $60,000, we could anticipate a bullish continuation up to $67,000. The next resistance levels to consider, assuming the bullish momentum persists, would be $68,000, $69,000, and potentially higher. This scenario would represent an increase of over 8.5%.

Bearish Scenario:

If Bitcoin's price fails to hold above $60,000, we could envision buyer interest support around $58,000. The next level to consider, should the bearish trend continue, would range within a price bracket around $57,000 and $56,000. This scenario would represent a decrease close to -11%.

Conclusion:

With just a week to go before the highly anticipated Bitcoin Halving, the cryptocurrency has faced significant selling pressure. This can be attributed in part to a complex macroeconomic and geopolitical backdrop. While the BTC market has exhibited some resilience in indicating sustained buyer interest, the mother cryptocurrency oscillates between bearish signals in the short term and an overall bullish trend.

Therefore, it will be imperative to closely observe the price reactions to various key levels to confirm or disprove current hypotheses. Additionally, it is essential to remain cautious of potential market "fake outs" and "squeezes" in any scenario.

It is important to note that these analyses are based solely on technical criteria, and cryptocurrency prices can also evolve rapidly due to other more fundamental factors.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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