Bitcoin and the global cryptocurrency market have recently been experiencing a downturn, with BTC struggling to reach its previous highs. Investors are concerned about the volatility in its price, especially with the upcoming Bitcoin halving event, expected to occur on April 20, 2024. The event is known for its impact on supply and demand, adding to an element of uncertainty to the market. While Bitcoin grapples with this challenging environment, analysts and investors are monitoring important technical indicators to predict its future direction, which could be towards either $50,000 or $70,000.
Market Performance of Bitcoin Price
Within the last day, Bitcoin (BTC) saw a slight increase in price, soaring by 0.67% to settle at $62,913.33 today. This has been a small improvement in the short-term, but the overall trend in the past week and month shows a less positive outlook.
The cryptocurrency experienced a decline of 8.79% in its value over the past week. In the past month, BTC also paid the chart red, incurring losses by 6.21%. Investors may be worried about the decreasing value of their assets due to this downward trend.
Despite these recent challenges, Bitcoin still maintains its position as the top cryptocurrency in the market, boasting a market capitalization of approximately, according to CoinMarketCap. The coin also experienced an increase of 18.17% over the past 24 hours to reach $37.05 billion, suggesting a decrease in the market activity. However, the market is still active, as indicated by 3.01% in the volume-to-market-cap ratio.
BTC price hit its all-time high of $73,750.07 just a month ago, on March 14, 2024. Since then, the price of the coin has dropped approximately 14.7%, indicating a correction from its peak. This recent instability might make investors be cautious while they move through the market.
Bitcoin Short Squeeze Likely Near $72,000; Support at $60,000
Certain analysts have pointed out that Bitcoin’s price breaching specific lows signifies a compromise in market structure. They have highlighted that most liquidity is centered around $60,000, with minimal support below that threshold. The possibility of Bitcoin falling to $40,000 is rejected due to lack of liquidity, with emphasis on the chance of a short squeeze if the price climbs to $72,000.
Drawing parallels to the bullish market of 2021, we find ourselves in a comparable stage to September, possibly facing a worst-case scenario just prior to June. Predicting more upward movement in the upcoming months, they believe there is still room for the market to shift in a positive direction. A decrease to under $60,000 may result in a fall to $54,000 to $58,000, indicating a goal of $50,000.
Bitcoin Price Forecast
Based on the technical analysis data provided, the outlook for Bitcoin (BTC) presents a mixed picture with potential support and resistance levels influencing the next move in its price. The most significant factors to consider are the moving averages, oscillators, and the MACD.
Short-term moving averages (10, 20, 30 periods) indicate a bearish trend since BTC is trading below both exponential and simple moving averages within these periods. On the other hand, the 100 and 200 period moving averages indicate a positive view, as BTC price remains higher than these averages. This shows the possibility of a prolonged increase in its prices in the future.
The BTC’s Relative Strength Index (RSI) is currently in a neutral area, indicating that the token is not in either an oversold or overbought condition. This means that the current price movement may not show a strong trend in any particular direction.
The MACD level is in a selling zone, which could suggest a continuation of the current bearish momentum.
On the downside, should the price of Bitcoin decrease, it will find strong support at 53650 and 62599 levels, which could provide a base for the coin to rebound from any downturn.
However, on the upside, should the BTC price increase, it will find resistance at 73662 and 77080 levels, which may hinder the price from rising further.
Based on the current technical indicators, the prediction for Bitcoin’s price is uncertain, fluctuating between a negative trend in the long-term and a positive trend in the short-term.
If BTC faces a bearish trend soon, it could potentially drop to around $50,218, which is the support level of the 200-period moving average, leading to a move towards $50,000.
Conversely, a move towards $70,000 could happen if BTC can maintain support above key levels such as the Fibonacci support at 62599 and reclaim the higher resistance levels, potentially continuing its longer-term uptrend.
Conclusion
Even though the current indicators for Bitcoin are unclear, the future outlook indicates a possibility of upward movement after the upcoming halving event. The future direction of BTC will be determined by its interaction with important support and resistance levels amidst market volatility. Traders and investors need to pay close attention to technical indicators and macroeconomic factors to determine if Bitcoin will reach either $50,000 or $70,000.al indicators closely to anticipate BTC’s future trajectory.