Bitcoin (BTC) Price Analysis: Despite Initial Selling Pressure, the Cryptocurrency Found Support That Allowed Its Price to Recover

After diving below $60,000, Bitcoin managed to rebound by more than 20%. Let's analyze together the future prospects of BTC's price.

Bitcoin price attempted to rebound from the $60,500 support level, but faced selling pressure that drove its price down to $53,500. However, BTC sales subsided at this price level in favor of buyers.

After consolidating in the form of an ascending triangle below $59,000, Bitcoin price found support from buyers, propelling its price above its last identified peak around $63,800. This technical breakout suggests the possibility of a trend reversal in Bitcoin’s short-term downtrend currently underway.

At the last glance, the Bitcoin price is trading around $63,000. Thus, Bitcoin seems to be undergoing a slight downward correction.

Nonetheless, the recent fluctuations of the primary cryptocurrency have allowed its price to return above its 200-day moving average. Although Bitcoin remains below its 50-day moving average, this is more convincing regarding the continuation of its medium to long-term trend. On the price momentum side, it is not surprising that it rebounded, as indicated by the BTC price itself and the oscillators.

All these elements undeniably demonstrate significant new buying interest, making investors optimistic about the future of the cryptocurrency price.

The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and mutual assistance around the financial markets in a professional and friendly atmosphere.

Focus on Derivatives (BTCUSDT)

The open interest of Bitcoin perpetual contracts increased by more than 28%, with the addition of positions equating to nearly $2.5 billion. Although it has recently declined, this increase, coupled with a rise in its underlying asset, a positive funding rate, and insignificant liquidations, indicates that a majority of speculators anticipate a rise in Bitcoin’s price.

Following the rise of Bitcoin this weekend, it can be noted that Bitcoin CME contracts have left behind a bullish gap.

A bullish gap occurs when the price of a financial asset opens at a level significantly higher than its previous closing price, creating a void on the price chart. This phenomenon often indicates strong buying pressure and can signal an imminent upward movement.

The liquidation heatmap of recent months indicates that BTC/USDT has come into contact with the liquidation zone around $65,000. It seems that the cryptocurrency aroused selling interest, as its price was quickly revised downwards.

Currently, the most significant liquidation zones of recent months are located on either side of Bitcoin’s price. Above the current price, we can note the zone around $67,500. However, the most apparent one is farther away, located between $72,000 and $73,000. Below the current price, we can note the subtle zone around $56,000 – $57,000. If the market approaches these levels, we could witness a massive triggering of orders, potentially increasing the cryptocurrency’s volatility. These zones therefore represent major points of interest for investors.

Hypotheses for Bitcoin (BTC) Price

Conclusion

Despite initial selling pressure, Bitcoin found crucial support that allowed its price to recover. Although undergoing a slight correction, Bitcoin shows positive signs of recovery, reinforcing investor confidence in its future prospects. However, it will be essential to closely monitor the price reaction at different key levels to validate or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.

Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.

Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content, and support around financial markets including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, by its side.

The above is the detailed content of Bitcoin (BTC) Price Analysis: Despite Initial Selling Pressure, the Cryptocurrency Found Support That Allowed Its Price to Recover. For more information, please follow other related articles on the PHP Chinese website!