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With the Bitcoin value experiencing a bit of recovery after plummeting to $102,000, conjectures are now plentiful regarding where the leading cryptocurrency might journey next. Thus far, it has been a mixed situation, with some anticipating a surge akin to the COVID rally to ensue, while others suspect that this marks the beginning of a bear market. Similarly, a pseudonymous crypto analyst has illustrated a concise forecast of where they believe the Bitcoin price might trend, hinging on its performance concerning the midpoint level.
What Occurs If The Bitcoin Price Remains Above the Midpoint?
Currently, the midpoint line is pivotal to the behavior of the Bitcoin price. This is due to its solid positioning between the major support and resistance seen in the recent weeks. Hence, the midpoint is around $111,994, highlighting the next critical juncture for the cryptocurrency.
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As the crypto analyst clarifies, should the Bitcoin price manage to stay above the midpoint, the subsequent significant resistance to overcome lies at the 0.75 Fibonacci level. This equates to the $117,605 price point, which marks the area where the bears could present their strongest opposition, especially considering that this trend appears bearish on shorter time frames.
Nonetheless, maintaining a position above this midpoint would imply that the trend stays bullish and favors the buyers. Therefore, it would instigate a trend towards rally confirmation, potentially steering the direction for a new pursuit of all-time highs. “A V-shaped recovery and swift move towards the highs would be maximum strain after such a harsh decline,” the analyst remarked.
Bears Could Still Regain Dominance
While the Bitcoin price remaining above the midpoint is still positive, there are far more negative implications should the price falter at this level. The analyst emphasizes that losing the midpoint would indicate that the Bitcoin price could once more be vulnerable to backfilling the wick.
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This wick refers to the flash crash wick formed last Friday, when the Bitcoin price dipped to $102,000. The market continues to struggle to recuperate from the previous crash, even with Bitcoin hovering above $110,000, and another decline toward $102,000 could be disastrous for altcoins.
Supporting the bearish outlook, another crypto analyst additionally pointed out that the Bitcoin price is showing signs of distribution. With this, it is plausible that Bitcoin could create a reversal pattern and continue its price downtrend. From this point, the analyst predicts the price ultimately dropping below $100,000 before finding stability.
Featured image created with Dall.E, chart from Tradingview.com
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