The Bitcoin price is now back down to $67,000 after touching above $71,000 earlier in the week. Given the circumstances surrounding the price recovery and subsequent decline, it has led to crypto analysts breaking out the technical indicators to figure out where the price is headed next. One crypto analyst, in particular, has identified that the cryptocurrency has entered a crucial zone, with important levels to watch that could tell where the price is headed next.
Bullish Scenario For Bitcoin
Presently, the break below $70,000 has sent the Bitcoin price into a perilous situation, making the current level just above $67,000 crucial to its next steps. Crypto analyst The Signalyst highlights this in their latest Bitcoin analysis where they identified that the BTC price is at a ‘make or break zone.’
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As The Signalyst points out, Bitcoin had been able to break above the accumulation level between $60,000 and $62,000, which had allowed investors to get in. Despite its decline in the last day, the price has maintained its position in the upper bound of this range.
For the bullish scenario to continuation, the crypto analyst explains that BTC must go ahead to break the upper bound of this range completely, which is the $72,000. This is the major resistance for bulls. If this happens, then The Signalyst believe that the Bitcoin price will move toward the next major resistance at $80,000.
Bearish Scenario For BTC
Similarly the to bullish scenario, the bearish scenario for Bitcoin could possibility play out at this level. As the The Signalyst points out, even though the price is currently still in the upper bound of the range, it risks being brought down by bears.
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In this case, the level to watch is the lower trend line, which currently sits around $62,000. Much like the resistance at $72,000, the support at $62,000 is what bears must break to pull the price further down. If this scenario were to play out and the bears successfully broke the lower trend line, then the analyst’s chart shows that the Bitcoin price could fall as low as $56,000. This would mean an over 20% decline from its current price.
BTC Price
Currently, the Bitcoin price is still seeing some bullish momentum, with its daily trading volume rising over 40% in the last 24 hours alone. This suggests that investors are still actively engaging with the cryptocurrency, something that could drive the price higher.
At the time of writing, BTC is hovering around $67,300, with a 3.29% loss in the last day, but still holding small gains of 1.68% on the weekly chart.
Featured image created with Dall.E, chart from Tradingview.com