Bitcoin (BTC) saw a steep decline after rumors that Interpol plans to launch a personal investigation against Binance chief Changpeng Zhao, but later rebounded. So what’s on BTC’s route from now on?
Bitcoin is in a strong horizontal channel
YouTube crypto analyst Daan de Rover has analyzed Bitcoin’s price action for various support and resistance levels across multiple timeframes. Using the 4-hour timeframe, Daan revealed that Bitcoin is consolidating sideways in a prominent horizontal channel. The channel is bordered by significant support and resistance on both sides. As long as bitcoin price stays in this range, there is no clear indication of future price action.
The analyst narrows it down to the 1-hour time frame to show that Bitcoin is already developing a downtrend, evidenced by a rejection on a descending trendline combining successive lower highs. Also, on the lower time frame, it confirms the downtrend corresponding to the lower lows. He says the continuation of the rally at the beginning of the year can only be confirmed by a break above the descending trendline. Specifically, using the daily time frame, Daan notes that the bullish momentum seems to be running out. He predicts a significant pullback in Bitcoin price ahead of another major rally.
Bitcoin creates ‘Inverted Bear’ structure
A closely followed analyst, nicknamed Rekt Capital, is warning Bitcoin (BTC) investors that the leading crypto could be close to a sell-off. The analyst says that Bitcoin still respects its diagonal resistance and could witness bearish price action in the short term. According to Rekt, the failure of Bitcoin bulls to push BTC higher could be a sign that the leading crypto is poised for a significant pullback. In this context, the analyst makes the following statement:
BTC continues to struggle at high resistance (black). Bitcoin will remain out of trend as it consolidates at $27,000 between high resistance and green support. A drop to green could happen soon. If it loses it -> a deeper pullback is confirmed.
Rekt also warns that Bitcoin is starting to form a bearish reversal structure on the daily chart. According to the analyst’s chart, a break of the support near $27,000 could confirm the reversal pattern. The analyst notes:
BTC double tops tend to be symmetrical patterns. The first part of the formation was formed in 10 days. Currently, the second part of the pattern is formed in seven days. The next few days will be crucial in determining whether the double top pattern will fully form.
The crypto strategist also raises the possibility of reflecting the 2015 market structure where BTC witnessed a deep correction after retesting bear market resistance as support. If Bitcoin repeats history, the analyst says the pullback could be the start of a strong uptrend. He explains his views on this matter as follows:
Historically, when BTC broke a macro downtrend, it was followed by a macro uptrend. But in 2015, BTC retested the downtrend before the uptrend. If there is a drop this April or May, this could be one of the last visits below ~$25,000 for several months.
BTC bulls have a solid technical advantage
According to Kitco senior technical analyst Jim Wyckoff, the weakening momentum of the crypto market is also evident in the futures market, with April Bitcoin futures prices “weakening slightly in US trading on Monday after hitting contract highs last week,” Wyckoff explains:
BTC bulls still have a solid overall short-term technical advantage. The price uptrend has stalled but remains on the daily bar chart. The path of least resistance for prices remains from the horizontal to the up.
Analysts prefer a cautious approach
Eight Global analysts pointed out the ongoing sideways price movement in the crypto market, “Not much has changed in the Bitcoin chart since last week. 8EMA per week [üssel hareketli ortalama]“It is bullish if the price catches the price here in a week or two rather than falling to test it, giving it a platform to bounce off resistance,” he says.
However, caution is needed as a “tower top-like candlestick pattern” appears on the chart. Analysts said, “Things look in favor of a continuation of the uptrend as long as any pullback from here finds support around the 34W EMA. The weekly RSI looks clean and has some headroom to work with,” he says.
Looking at the 1-day chart, the previous day’s candle managed to close above the 8EMA, but soon started to fall below this level and took the green ascending trendline support.
Analysts said, “Price on a per channel basis only touched the EQ. With 34EMA coming in hot from below, we wouldn’t be surprised to see price visit the channel floor when it syncs with 34EMA and test both for support in a single move.” Taking a cautious approach, Eight Global recommends “focusing on the $28,500-29,000 resistance, $27,000 (channel EQ) and $26,700 (channel lower) support levels in anticipation of reading the next move.”
Epic Bitcoin prediction from analyst Nicholas Merten
Nicholas Merten, a widely followed crypto analyst and host of DataDash, has warned investors that he believes the asset class may experience a widespread collapse later this year. The analyst says it’s not a good bet to rely on the Federal Reserve to revive the crypto markets once again by running the money printers. In this context, the analyst makes the following assessment:
The worst time to enter is when you have false hopes that the Fed can print large amounts of money, and unfortunately I know a lot of people are excited about QE (quantitative easing), but that’s not enough to spark another bull market. The fact that the Fed continued to raise interest rates last month is a sign that the Fed will continue to do its job, doing the least.
According to Merten, the crypto market is about to pass a very important test, and if it fails, the overall market value of the industry could suffer a huge decline. In this regard, he records:
To sum up for Bitcoin, for crypto and for the overall market cap, we can see that we have entered the potential resistance band that has not been crossed since January, this will be a real test for the market and we will go down and [tüm zamanların en yüksek seviyelerinden] We really think we’re going to get the typical 85% correction.
The analyst urges investors to be patient as such a drop would bring the overall market cap into a region that has historically acted as support.
Bitcoin is facing downturn, but…
In the latest market assessment by crypto analysts CryptoDonAlt and CryptoCred, the weather was bleak as both experts predicted a bearish trend in the cryptocurrency market. While experts presented key resistance and support levels for the popular cryptocurrency, the focus was primarily on Bitcoin. According to their analysis, Bitcoin’s current resistance is at $28.9k, while support is at $28,000.
However, experts warn that if Bitcoin breaks down from the support level, it could hit a target of $25.2k, a significant drop from its current price. On the other hand, if Bitcoin manages to break out of the resistance level, the target price could reach as high as $37.7k. In addition to the mentioned resistance and support levels, analysts also highlighted the importance of the monthly close for Bitcoin. The current monthly close is $28,500, which is important for monitoring potential price movements.
Analysts also identified a breakout resistance of $35,000 for Bitcoin; this could be an important price target should Bitcoin break out of the current resistance level. They also state that they expect the Bitcoin price to stay above the $23,000 level, presenting a positive outlook for the next six months. This shows that the general trend for Bitcoin may be upwards in the medium term, although there are short-term fluctuations.
BTC will give bears a ‘welcome jolt’
Cryptocurrency analyst and trader Bob Loukas shared his views on when Bitcoin might shake off all the bears. Loukas states that once Bitcoin rises above $34,000, “the bears will finally drop their bias.” He also notes that at the same level, the market will give them a “welcome jolt.”
Reclaiming the $34,000 level does not seem like an easy task for Bitcoin, as BTC was last seen in May 2022. However, as you follow on Kriptokoin.com, the Bitcoin price has recently even reached the $29,000 level as a result of the banking crisis that hit the US after several major banks were shut down and bailed out or sold.
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For the rest of the article, 7 Bitcoin Analysts: BTC Is Playing These Levels Now!