The post Bitcoin Price Analysis: $70k or $50k What’s Next For BTC Price? appeared first on Coinpedia Fintech News
Analyst of AMcrypto has opened up in detail about the recent market fluctuations, pondering whether the downward trend is nearing its end or if further declines are on the horizon. Amidst geopolitical tensions and market uncertainties, the analyst examined key support and resistance levels in Bitcoin’s price action.
He explained the importance of understanding the current market dynamics. If the market breaks below a certain low, it signifies a breach in market structure. Exploring the concept of liquidation levels, he noted that while there is a concentration of liquidity around $60,000, there’s considerably less liquidity below that level.
The analyst argued against the likelihood of Bitcoin dropping back to $40,000, citing insufficient liquidity to support such a move. Additionally, he highlighted the potential for a short squeeze if the price rallies back to $72,000, as significant long positions would be liquidated.
He explained that, in all likelihood, when comparing the current situation to the bullish run of 2021, it seems to be at a similar phase, possibly akin to September of that year. Even in the worst-case scenario, it might be situated around the period just before June, or perhaps a bit after, considering the dynamics influenced by ETFs. This Analysis assessment places us roughly where we stand now, with the potential for further upward movement over the next few months.
The presence of a single red candle this month wouldn’t concern him greatly, as there’s still time for the market to shift, and there’s a chance it could even turn into a green candle by month’s end. While the current outlook may not be overwhelmingly positive, there’s always the possibility of a market surprise.
Examining Bitcoin’s daily timeframe, it’s evident that a drop below $60,000 could lead to a decline to around $54,000 to $58,000, given the formation of an M pattern, typically suggesting a target of $50,000.
