Crypto pundit Crypto Bully has shared his base case for Bitcoin and what to expect before the flagship crypto rallies above $100,000. This comes as BTC continues to struggle to hold above the $70,000 resistance amid escalating tensions in the Middle East.
Analyst Shares Base Case For Bitcoin
In an X post, Crypto Bully stated that the path and exact levels of Bitcoin are not important in the long run, aside from immediate support and resistance levels. The analyst shared key points, including the observation that downside retests have not worked for a while. He pointed to the $85,000 level, which he noted is the logical lower high from the previous value generated before a further collapse due to extensive selling.
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However, the analyst suggested that the downtrend is not over, noting that bear market bottoms take months, not weeks. His accompanying chart showed that Bitcoin could still drop to $50,000. In the short term, he predicted that the flagship crypto could drop to $65,000. As for the bullish outlook for BTC, Crypto Bully stated that a break above the current level near $72,000 could easily spark a rally towards $85,000.
He explained that a Bitcoin rally to $85,000 is possible, given the strength the flagship crypto has shown amid the ongoing geopolitical turmoil. The analyst added that the aggressive inflows into the BTC ETFs have not disappeared during this period. SoSoValue data shows that the Bitcoin ETFs recorded a net inflow of $767 million this week.
Crypto Bull said the best DCA strategy is to buy Bitcoin whenever it drops from $65,000 down to $50,000. He revealed that his current spot buying average is around $67,000.
BTC Is Not Yet At A Bottom
A CryptoQuant analysis noted that the Bitcoin bottom is “not quite” in. The analysis revealed that, despite BTC’s resilience amid recent geopolitical tensions, on-chain data indicate the leading crypto is in a critical “stress test” phase. It added that the bottoming process could take a long while, with institutions being the primary investors in this cycle.
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The analysis also highlighted two paths to a Bottom for Bitcoin. The first path is a potential Black Swan that could trigger a crash, forcing liquidations and wiping out high-cost “new money.” CryptoQuant noted that this is the fastest route to a solid floor, which could form between one and two months.
The second path is longer and involves a scenario in which Bitcoin trades sideways between $60,000 and $80,000 for a year, allowing new money to grow into long-term holder status. Under this path, the bear market could extend to late 2026 or early 2027.
At the time of writing, the Bitcoin price is trading at around $71,000, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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BTC price is tapping a new lifeline this week following a dip that tested $25,000 support on Monday. Despite the market being in a dilapidated state due to the lack of liquidity, this swipe at the major support challenged investors’ “wait-and-see” stance, with some seeking fresh exposure to the largest crypto, foreseeing gains of at least to $28,000.
Will BTC Price Uphold Gains To $28k?
Bitcoin’s price sharp bounce from weekly lows around $25,000 not only gained ground above $26,000 but tested the short-term resistance at $26,400 for the second time in September.
The uptrend would have continued uninterrupted if it were not for the short-term overbought conditions and resistance posed by the descending trendline. The Stochastic oscillator reveals that BTC price had to retreat to collect momentum while allowing relatively sidelined investors to buy.
Up a mere 0.2% to $25,871, Bitcoin is seeking support provided by the 50-day Exponential Moving Average (EMA) (red) at $25,844. Keeping this support intact would play a huge role when bulls are mulling the resumption of the uptrend.
There’s a higher probability that the expected gains to $28,000 will be sustained this time, especially with a buy signal coming from the Moving Average Convergence Divergence (MACD) indicator.
Traders can consider holding onto their long positions as long as the blue MACD line is sitting above the red signal line. This signifies a strong momentum propping Bitcoin for more gains.
A successful break and hold above the descending is another milestone to look forward to, indicating that the downtrend is over and BTC is easing into a stronger uptrend.
Meanwhile, not all analysts are convinced that the downtrend in BTC price is over. Rekt Capital believes Bitcoin completed a double-top pattern earlier this week with the drop to $25,000. This also implies that there is room for another sweep at lower levels, plausibly at $22,000 ahead of the bull market.
However, the analyst and trader cautions that it is “Worth noting but still very early stages & lots can still change in the meantime.”
If #BTC drops to ~$26000 by mid-September then a Double Top may be forming
A breakdown from ~$26000 would validate the DT
And a Measured Move for the DT would be ~$22000
Worth noting but still very early stages & lots can still change in the meantime$BTC #Crypto #Bitcoin pic.twitter.com/I4npIDq44f
— Rekt Capital (@rektcapital) August 7, 2023
Shrinking Liquidity Still A Challenge
Liquidity in the crypto market has been a major problem since the implosion of FTX and continues to dry up across the board. According to on-chain analytics platform Glassnode, volumes have thinned to historical lows both on-chain and off-chain.
“Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant unrealized loss.”
Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows.
Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant… pic.twitter.com/twInh0OqKf
— glassnode (@glassnode) September 11, 2023
The liquidity crunch is likely to be stemming from several factors, including concerns about the regulatory environment, especially in the US. Traders and investors are comfortable with a “wait-and-see” approach, hence the low trading activity.
“Some investors might be hesitant to move their assets due to the prevalence of volatile price swings, especially in the cryptocurrency market.” @AzukaDM, a web3 strategist said via X (Twitter). “This reluctance to trade can result in lower liquidity.”
Another factor resulting in low liquidity levels could be the growing popularity of DeFi and staking platforms which remove a significant amount of digital assets from the circulating supply.
That said, BTC price needs enough momentum to sustain gains above $26,000 with a break above $28,000 likely to propel the crypto beyond $30,000. On the downside, losing the 425,000 support could trigger another sell-off to $22,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin price is back to performing dismally toward the end of the week despite bulls venturing toward $30,000. The largest crypto is down 0.5% to $29,344 amid one of the most critical weeks in crypto. On the other hand, its peer, Ethereum, has remained relatively unchanged over the last 24 hours, trading at $1,852. Generally, the
The post Bitcoin Price Prediction: A Risky Run-Up To Key US CPI Data? appeared first on CoinGape.
]]>Bitcoin price is trending higher on Thursday following a generally sluggish week in the cryptocurrency market. The most prominent coin is up 0.8% to $29,444 amid a renewed bullish push, with a 24-hour trading volume of $12 billion and $572 in market capitalization.
This bullish wave appears to be traversing the market, as Ethereum is up 1.3% to $1,876, XRP is up 2% to $7.1 while BNB is trading at $242 following 1.8% of 24-hour gains.
Bitcoin Price Ready to Tackle $30k Resistance
Bitcoin price is on the move to retest the seller congestion at $30,000. Its uptrend is grounded in the support established around $29,000 – an area that has been instrumental in preventing declines to $28,000 and subsequently $25,000.
The ongoing uptrend could be attributed to oversold conditions in lower timeframes – likely to result in a buy signal from the Moving Average Convergence Divergence (MACD) indicator.
That said, traders should be on the lookout for a potential bullish cross in the momentum indicator, especially on the daily chart, marked by the MACD line in blue crossing above the signal line in red.
The Relative Strength Index (RSI) will provide further assurance of the uptrend if it starts trending higher within the neutral area (30 – 70). Traders seeking exposure to long positions may want to wait until Bitcoin price sustains support above the 50-day Exponential Moving Average (EMA) (red) at $29,367.
A sustained break and hold above would amplify the buying pressure, with investors reaffirming their bullish projections for gains above $32,000 and eventually to $35,000.
According to Captain Faibik, a popular crypto analyst and trader, Bitcoin will likely “hit $32k first, and then we may witness a 15 – 20% correction in the coming weeks.”
The chart in the tweet below reveals that Bitcoin price recovery above $30,000 may slow down on approaching the stubborn resistance at $32,000, thus triggering a sell-off to $25,000.
I think $BTC will hit 32k first, and then We may Witness a 15-20% Correction in the Coming Weeks.
Share Your Thoughts
#Crypto #Bitcoin #BTC pic.twitter.com/Qni4cCBxLX
— Captain Faibik (@CryptoFaibik) July 27, 2023
Bitcoin Volume Dominance Drops – What Does This Mean?
Bitcoin dominance volume has been on a long-standing downtrend, dropping by 8% since the beginning of July and 27% since April. The Ripple ruling saw a sudden shift in investor interest to altcoins, at the expense of the BTC dominance, a picture that has been reflected across 25 centralized exchanges.
Offshore exchanges were impacted the most by the drop in BTC trading activity. The Kaiko report says that this could be “partially due to a spike in South Korean altcoin volume.”
“Since the start of 2023, BTC dominance has fallen by 20%. On U.S. exchanges, altcoins have also gained traction over the past month, which suggests the regulatory crackdown has not yet dampened demand,” the Kaiko report states.
On the other hand, altcoin liquidity “measured by 1% market depth,” has recorded a minor uptick since the beginning of July. Market depth for the top 10 altcoins shot up by approximately $20 million.
Since no one can tell how long this drop in BTC dominance is likely to last, it would be prudent for traders to prepare for a probable retracement to $28,000, while not ruling out further declines to $25,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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